We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

How to Encourage Economic Stability - Essay Example

Comments (0)
Summary
 This essay describes the major economic problem facing economists is the allocation of the scarce resources in the most efficient manner. Scarce resources are those that are inadequate to meet all the needs of the society and should, therefore, be allocated in the most efficient ways…
Download full paper
GRAB THE BEST PAPER
How to Encourage Economic Stability
Read TextPreview

Extract of sample
How to Encourage Economic Stability

Download file to see previous pages... In answering the questions above, the economy will determine what is necessary to produce in order to achieve the desired economic goals and the manner of production i.e. whether to use the labor-intensive or capital-intensive technique. After production, the goods and services must be distributed to the target group or sector of the economy. In doing this, the economist must further ensure that it promotes economic stability i.e. a situation in which the inflation rates, interest rates, unemployment rate, foreign exchange rate are all put under control. Moreover, resource allocation must promote economic growth.
The government in solving the economic problems and achieving economic stability uses both fiscal and monetary policies. Fiscal policy is the use of taxation and government spending to influence economic performance whereas monetary policy entails the control of interest rates and spending to attain economic stabilization (Bidard 66). The government can use either fiscal policies or monetary policies or both in solving the economic problems.
During the recession, for instance, the level of economic activity is low and the government problem will be on how to stimulate economic activities in the economy. To achieve this, the government will increase its level of spending and reduce the tax rate. This would, therefore, result in an increase in disposable income that would be invested to stir economic activity. Increased investment would lead to economic growth and increased level of employment. Similarly, the government will control the level of inflation by the use of monetary policies. In the case of high level of inflation, the government, through the central bank will increase the level of interest rates (Bidard 72). An increase in the interest rates will lower the level of economic activity and reduce the amount of spending.   ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Role of Stock Market and Banking System in Promoting Economic Growth and Ensuring Financial Stability
In the given paper, different theoretical factors are discussed to understand how banks and stock exchange influence the economic growth. The banking system acts as an intermediary that mobilise the funds from individuals to the enterprises. Similarly, the stock market is a platform through which the companies can raise capital for the business.
11 Pages(2750 words)Assignment
How relevant are contemporary attempts to encourage 'green consumerism'
Others think that this is just a cunning marketing technology aimed at “milking” naive customers. Being a strategy to save the Earth green consumerism opposes itself to a mass of greedy consumers from industrialized world and gives them the choice “It is up to you.” Consumer demand has taken all of us into a trap and now it must take us out of it.
8 Pages(2000 words)Essay
Taking the Steps towards Economic Stability
Basically, even the ordinary people when thinking of payment people tend to worry so much. Money talk is really a very complex topic. There are so many things that you have to consider. There are lots of conditions that need to face. Balance of payment is a wide varying area that needs to discuss especially by the government.
10 Pages(2500 words)Essay
Examine the ways in which business contributes to economic, political, and social stability and instability
However, there is available evidence that businesses and the policies that define business practices can have an overwhelming impact on the political, economic, and social stability. This paper will consider the effect of businesses on these three aspects, with the first section describing the ways in which businesses contribute to economic instability and or stability.
8 Pages(2000 words)Essay
Impact of external debt on fiscal stability and economic development. a case study of Nigeria
These plans included policies geared toward the public sector as well as extension services (Library of Congress Country Studies--Nigeria, 1991). To ensure this they implemented the policy of regional derivation to assure the entire nation would benefit from the immense oil revenues rather than just the Niger Delta alone (Suberu, 2002).
30 Pages(7500 words)Case Study
How to encourage spaces into social spaces- cases study on OMA's works
space that enables socialisation, communication and interaction between individuals in a society: they are usually not private spaces, and yet not fully ‘public’ in the sense that social spaces are created with the particular intention of encouraging exchange of ideas,
20 Pages(5000 words)Essay
A cross-country analysis of the impact of political stability on economic growth
olitical and economic situations of four countries, Canada, Iraq, the United Kingdom and Somalia, will demonstrate a direct relationship between political stability (or lack thereof) and economic growth. A theoretical analysis of the two key concepts in this essay, political
14 Pages(3500 words)Essay
How strongly / effectively is Human Resource management of Virgin airline to encourage the customer service
The proposed research work is focused on understanding how airline industry’s human resource practices influence the quality of services provided to the customers. For this purpose, the researcher has selected
2 Pages(500 words)Essay
The Relationship Between Political Stability and Economic Growth
There is an interconnection between political stability of the country and its economic indicators. Reduction in investment and slow development may occur due to the uncertainties, brought by unstable politic environment. Political stability can also take the form of stagnation in a country where competition is not allowed, affecting the growth.
4 Pages(1000 words)Essay
What is innovation and how businesses encourage it
For most businesses, innovation refers to the implementation of new ideas, creating new products or improving your current services. Therefore, innovation can be a catalyst for the success and growth of your business, and can make one to be adaptive and grow in the
3 Pages(750 words)Assignment
Let us find you another Essay on topic How to Encourage Economic Stability for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us