Economic Policies And Economic Policy

1096 Words5 Pages
In every country there 's a government and economy. Each counties government helps or tries to help recover, stabilize, and grow the economy. First thing we need to look at is economic policy. Economic policy refer to actions the government makes in the economic field. For example the taxation, the government supply, money supply, interest rates, along with the labor market, and national ownership. Inside the economic policy you will find all sorts of things that help make the policy stand on it 's two feet. The three main parts that tie into economic policy are supply-side economics, demand-side economics, and monetary policy. Each of the three economic structures will also help define and show what all the economic policy is and does and how it all works. The first "branch" of the economic policy is the supply-side economics. Supply-side economics is simply the macroeconomic theory, which deals with the arguments of the economic growth. Economic growth can be most effectively created by investing in capital and by lowering barriers on the production of goods and services. Now the macroeconomic theory is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as one big market, rather than individual markets. When Ronald Reagan was our 40th president he saw the supply-side economics was more known as "trickle down". Meaning that Ronald Reagan had thought that if he cut the tax for entrepreneurs and
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