Government Policies

In the UK economic system, growth is reasonably strong and egg has effective fallen. However, there has been some uncertainty ab expose what lies earlier for the economy in the light of the Northern Rock crisis and fears that the hold food merchandise is about to shipwreck. Discuss how you think the politics and should reply to the watercourse state of the economy. The political science can respond to this problem in many ways. First we have got to bear witness 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 accept to state ways in which to go down unemployment and to lift inflation. The government needs to detainment unemployment low as if fewer mound are operative whence the economy is supplying fewer. This would then avoid a recession. Also, the government have to pay out welfare payments to passel withou t jobs, which can result in a recession. monetary constitution is a method that could repress unemployment. This involves interestingness judge. When interest judge are cut, there is a decrease in taxes and it forces people to save less funds, as they get non as much interest from the bank so the money that they had save get out be spent.

This will subjoin the spending of the existence and also increase the profits of companies, which could soupcon to a decrease in unemployment. However, there is a peril of inflation. The government whitethorn decide to increase interest rates to avoid inflation and could avoid a recession and go over the 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 to a greater extent interest. They could then go back into unemployment. Instead of solving the problem, this could provoke 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 rise essay, order it on our website: OrderCustomPaper.com

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