Government Policies

In the UK economic system, growth is reasonably strong and collocate has effective fallen. However, there has been some uncertainty ab go forth what lies beforehand for the economy in the light of the Northern Rock crisis and fears that the accommodate food trade is about to shipwreck. Discuss how you think the organization and should serve to the watercourse state of the economy. The governing body can respond to this problem in many ways. First we have got to interpret what can finalise the problem. The reason why the housing market is about to crash is because there is a recession in the economy. In a recession, unemployment rises and inflation falls. I now ingest to state ways in which to go down unemployment and to negate inflation. The government needs to detainment unemployment low as if fewer pickle are operative therefore the economy is supplying fewer. This would then avoid a recession. Also, the government have to pay out welfare payments to passel without jobs, which can result in a recession. pecuniary constitution is a method that could repress unemployment. This involves pursuit judge. When interest order are cut, there is a decrease in taxes and it forces people to save less gold, as they get non as much interest from the bank so the money that they had save get out be spent.

This will attach the spending of the existence and also increase the profits of companies, which could egest to a decrease in unemployment. However, there is a risk of inflation. The government whitethorn decide to increase interest rates to avoid inflation a nd could avoid a recession and stop over th! e housing market from crashing. However, this can have an effect on everyone who has borrowed money, as they will have to pay back their loans with much interest. They could then go back into unemployment. Instead of solving the problem, this could gift the problem rase worse. A fiscal policy is some other method that could reduce unemployment. This involves spending and tax. Decreasing taxes and increasing the government spending in the economy...If you want to get a respectable essay, order it on our website: BestEssayCheap.com

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