Chapter 22: The relationship between business and the political and legal environment

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  • Created by: lfcvish
  • Created on: 02-04-12 13:49

The government has 3 types of economic policies that it can use to control economy of the country.

Fiscal Policy - Changes in the government spending and tax levels to manage the economy, this is usually announced in March by the chancellor of the exchequer. 

  • Expansionary fiscal policy - increases in government spending greater than increases in tax. This increases total demand.

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