economic policy conflicts

Economic growth

So economic growth has a positive impact on income and jobs. It increases tax revenue so there is more resources for governments to use for providing merit goods and decreases government depth. It also increases standard of living so people can consume more goods and services

Evaluation of economic growth

Some of the factors that contribute to economic growth are beyond the control of the government if output is capital letter then unemployment may rise which counteract economic growth

Low and stable rate of inflation

If inflation is too high, it will lead to decrease international competitiveness of exports which will worsen the trade ban. It has a negative impact on those of fixed income although nominal income remain the same height inflation main result in MPC increasing interest rates which has a negative impact on the cost of worrying money which have a significant impact on those of variable boards

Evaluation of inflation

Inflation may be a cost issue so using demand policies to control for it could worsen the economic problem reducing AD the use of interest rate to control for inflation can be blunt not impacting the real problem. Inflation is a sign of economic activity that is good for the economy. If other countries are also experiencing inflation then international competitiveness is not an issue.

Low unemployment

Unemployment results in economic cost loss of tax revenue and human capital it also has social cost like increased crime

Evaluation on low Unemployment

If the multiply affects more than the impact may be negligible and the cost of boosting AED or significant classical economist if the market of the markets are allowed to work and people accept the market progressively but then unemployment won’t exist. Expenditure job centres is questionable because only a small proportion of the country will use it overtime unemployment can cause structural changes in the economy and will be resolved as people re

Benefits of payment equilibrium on the current account

Persistent overflow means over spending overtime it makes a country poor or causing unemployment and rising national debt

On the Balance of payment equilibrium evaluation

If deficit spending is spent on capital then in the long run there won’t be a deficit. A deficit is not a problem with a floating exchange rate. The markets will not will make adjustments when there’s a deficit. The currency gets cheaper making exports cheaper and import more expensive persistent deficit deficit it may be an indication of economic growth.

Balanced government budget

If the government borrow more money than it can repay or lead to rising national debt limits the amount of money available for health education and infrastructure

Evaluation on the balance government budget

Cutting fiscal deficit can result in negative economic growth and rising unemployment high national death could be cyclical rather than structural due to recession short to medium term deficits can be used to boost a DAD