Economic Policies And Economic Policy

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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…show more content…
Now as we can see supply -side has a demand for small government and less of a tax policy. Both of which as seen in the political views of things. So to add on to what supply-side economics is you also need to remember that politics has role. Supply-side economics has a little bit of a background when you look into it. Based upon the three pillars and what each one deals with you can see that you can not take away the political side of it because it would then demand a smaller role for the government and a less tax policy. So the next "branch" of the economic policy would be demand-side. Demand-side economics relates to an economic theory that defends the use of government spending and growth in the money supply to prompt the demand for goods and services,thus leading to the expand of economic activity. With demand-side economics there is a theory that some believe will work. Demand side economist support government spending to the fullest. They do so because they think it will overcome the short-term low aggregates demand. "Raising the market 's aggregate demand will reduce unemployment and encourage economic activity, according to this theory. " By spending the government increases demand on
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