Wednesday 13 January 2010

wanna be cool like Olexiy!!!...^-^

Government try to achieve:
to reduce unemloyment
stabilize balance of payments
reduce inflation
economic growth
and something else ^-^
cost push inflation (decreas AS)
demand pull inflation (increase AD)
What government shall do to reduce uneployment?
to:
1) to reduce taxes
2) to cut interest rate
3) to help to find a job
4) to REDUCE immigration ^-^ (india)
5) subsidy
6) to reduce import/more export
7) to reduce monopoly
8) to reduce "trade union power"
9) increase in nation service (army,,,etc)
10) reduce benefits =(
11) higher min.wage
12) increase in health,education,roads...etc
to reduce inflation:
1) increse in tax
2) to cut government spending
3) increase in interest rate:
Increased interest rates will help reduce the growth of Aggregate Demand in the economy. The slower growth will then lead to lower inflation. Higher interest rates reduce consumer spending because:
increased interest rates increase the cost of borrowing, reducing spending
Increased interest rates make it more attractive to save money
Increased interest rates reduce the disposable income of those with mortgages
4) privatisation and deregulation (transfer of assets from the public to the private sector)(The removal of government controls from an industry or sector, to allow for a free and efficient marketplace)
Causes of the inflation:
1) income
2) wealth
3) population
4) interest rate
5) high profits
6) income growth
and finaly : who is better arsenal or chelsea?

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