Professional Documents
Culture Documents
a survey
V
Free markets
markets forces of DD and SS
SS price
mechanism invisible hand
mechanism hand laissez
faire«..
Ô u
Ô !"#
!#!# !
$
Ô %#!&'"
"#
"# $(
Ô %#! )#
" "* +#&!!,
"
Ô -)#'!*
!!&#"###
Ô )#!$.!!
/"!
Ô 0!#!.
.
1" 2&#!
##!!##!
!&#
G
Ô 3"
3" *!
*!
.
45
Ô 6!
6!1 )7
Ô 28)
45(
&*#"
&#!#
Ô 0&#!+&
0&#!+&
,, !
'1'2
Ô ##
!&
"##".
!
Ô +#"
.!
!##&
#))!
(,4)$!
(,4 )$!
mm
Ô The post II world war regrouping of the
world
Ô The break down of the colonial empires
Ô The emergence of new nation states and
their new growth agendas
Ô The division of the world into two power
blocks
Ô The entry of the big business enterprise
m
Ô High level and rapid growth of output
output
economic growth
Ô Full employment ± high level of
employment with low involuntary
unemployment
Ô Price
Price level stability &
Ô Exchange rate stabilty ?
Ô FISC L POLICY
POLICY use of taxes and govt.
expenditure
Ô Govt. expenditure consists of purchases of
goods and services, transfer payments etc. ±
govt. spending determines the relative size of
public and private sectors
Ô Taxes impact in two ways, one by affecting
people¶s incomes and two, by affecting prices
of goods & services & thereby incentives and
behaviour..
behaviour
Ô MONET RY POLICY
POLICY regulating the
money supply of the country by
managing money , credit and banking
system of the country
Ô Money supply influences many financial
and economic variables like interest
rates, stock prices, housing prices and
foreign exchange rates