(BQ) Part 2 book "Economics for business and management" has contents: Government policies - instruments and objectives; demographic and social environment; political, legal, ecological and technological environment; functions of management - domestic business environment, international business environment,.and other contents. | Chapter 10 Government policies: instruments and objectives Introduction This chapter takes forward the broad analysis of Chapter 9 into the more specific areas of government policy making. Such policies play a key role in shaping the macroenvironment in which businesses and households must operate. Government policies on tax rates and allowances, levels and types of expenditure, interest rates and credit availability, public service provision, pension entitlement and on many other issues will have a major impact on businesses and households. This chapter introduces the aggregate demand and aggregate supply schedules to help deepen our understanding of issues such as inflation, unemployment and economic growth. Learning objectives: By the end of this chapter you should be able to: ■ identify the key policy instruments available to governments in seeking to influence the macroeconomic environment and review their relative effectiveness ■ consider in some detail fiscal policy, monetary policy and exchange rate policy in the UK and other economies and assess their impacts on businesses and households ■ explain what is meant by ‘built-in stabilisers’ and show how these can help avoid excessive increases or decreases in economic activity ■ understand how and why governments seek simultaneously to achieve the objective of price stability, low unemployment, balance of payments equilibrium and sustained economic growth and the implications for business and households ■ use aggregate demand and aggregate supply curves to analyse issues involving inflation, unemployment and economic growth. 370 Chapter 10 · Government policies: instruments and objectives We begin by looking in some detail at the use by governments of fiscal policy, paying particular attention to its role in the UK. Fiscal policy ‘Fiscal policy’ is the name given to government policies which seek to influence government revenue (taxation) and or .
