SlideShare a Scribd company logo
1 of 1
Download to read offline
Broadly speaking, the economy consists of households, firms, government, and financial
institutions. Name two parts, areas, or types of government that can have influence over the
economy
Solution
Explanation:
- Financial policy:
Monetary Policy of any government can have major impact on economy of a nation since it has
the power to stimulate the economy and change the way economy behave. Financial policies are
performing major part in economy and it can make or break economy. How the taxes are levied
can majorly impact economy. Financial policies move control the flow of the money and it can
inject new money flow in system to revive it.
- Fiscal Policy:
Another major player in stimulating and impacting economy at it best is fiscal policy. Fiscal
policy mainly works to overcome from struggling economy and reduce the inflation in market.
Interest rate is popular tool to control the flow money through changing interest rates.

More Related Content

Similar to Broadly speaking, the economy consists of households, firms, governm.pdf

Economic policies.docx ambot lng ani. (1)
Economic policies.docx ambot lng ani. (1)Economic policies.docx ambot lng ani. (1)
Economic policies.docx ambot lng ani. (1)
Jr Abenoja
 
Ch 15 presentation
Ch 15 presentationCh 15 presentation
Ch 15 presentation
krobinette
 
Economic stabilization Managerial Economics
Economic stabilization Managerial EconomicsEconomic stabilization Managerial Economics
Economic stabilization Managerial Economics
Nethan P
 
How do government policies andor regulations factor into changes in.pdf
How do government policies andor regulations factor into changes in.pdfHow do government policies andor regulations factor into changes in.pdf
How do government policies andor regulations factor into changes in.pdf
arihantcomputersddn
 
Introduction of macroeconomics - Inflation
Introduction of macroeconomics - InflationIntroduction of macroeconomics - Inflation
Introduction of macroeconomics - Inflation
diddy98
 
Monetary policy AND TYPES
Monetary policy AND TYPESMonetary policy AND TYPES
Monetary policy AND TYPES
Muhammad Asad
 

Similar to Broadly speaking, the economy consists of households, firms, governm.pdf (20)

Economic policies.docx ambot lng ani. (1)
Economic policies.docx ambot lng ani. (1)Economic policies.docx ambot lng ani. (1)
Economic policies.docx ambot lng ani. (1)
 
Ch 15 presentation
Ch 15 presentationCh 15 presentation
Ch 15 presentation
 
Economic stabilization Managerial Economics
Economic stabilization Managerial EconomicsEconomic stabilization Managerial Economics
Economic stabilization Managerial Economics
 
Economic%20 environment
Economic%20 environmentEconomic%20 environment
Economic%20 environment
 
Essay On Fiscal Policy
Essay On Fiscal PolicyEssay On Fiscal Policy
Essay On Fiscal Policy
 
Public finance nature and Scope
Public finance nature and ScopePublic finance nature and Scope
Public finance nature and Scope
 
Fiscal Policy & Inflation
Fiscal Policy & InflationFiscal Policy & Inflation
Fiscal Policy & Inflation
 
Intro to Public finanace Managemnt.ppt
Intro to Public finanace Managemnt.pptIntro to Public finanace Managemnt.ppt
Intro to Public finanace Managemnt.ppt
 
micro vs macro.docx
micro vs macro.docxmicro vs macro.docx
micro vs macro.docx
 
Managerial Economics (Ajeenkya D Y Patil)
Managerial Economics    (Ajeenkya D Y Patil)Managerial Economics    (Ajeenkya D Y Patil)
Managerial Economics (Ajeenkya D Y Patil)
 
Washington consensus and its important points with respect to pakistan
Washington consensus and its important points with respect to pakistanWashington consensus and its important points with respect to pakistan
Washington consensus and its important points with respect to pakistan
 
Explain briefly how a contractionary gap OR an expansionary gap is f.pdf
Explain briefly how a contractionary gap OR an expansionary gap is f.pdfExplain briefly how a contractionary gap OR an expansionary gap is f.pdf
Explain briefly how a contractionary gap OR an expansionary gap is f.pdf
 
How do government policies andor regulations factor into changes in.pdf
How do government policies andor regulations factor into changes in.pdfHow do government policies andor regulations factor into changes in.pdf
How do government policies andor regulations factor into changes in.pdf
 
Business environment
Business environmentBusiness environment
Business environment
 
Macro Economics
Macro EconomicsMacro Economics
Macro Economics
 
Fiscal policy
Fiscal policyFiscal policy
Fiscal policy
 
Monetary, Fiscal and Income policy – Meaning and instruments
Monetary, Fiscal and Income policy – Meaning and instrumentsMonetary, Fiscal and Income policy – Meaning and instruments
Monetary, Fiscal and Income policy – Meaning and instruments
 
Introduction of macroeconomics - Inflation
Introduction of macroeconomics - InflationIntroduction of macroeconomics - Inflation
Introduction of macroeconomics - Inflation
 
Lecture 8FP.ppt
Lecture 8FP.pptLecture 8FP.ppt
Lecture 8FP.ppt
 
Monetary policy AND TYPES
Monetary policy AND TYPESMonetary policy AND TYPES
Monetary policy AND TYPES
 

More from fckindswear

Nessus is a network security toolIn a pragraph describe how it is .pdf
Nessus is a network security toolIn a pragraph describe how it is .pdfNessus is a network security toolIn a pragraph describe how it is .pdf
Nessus is a network security toolIn a pragraph describe how it is .pdf
fckindswear
 
Luthans and Doh (2012) discuss two major forms of communication flow.pdf
Luthans and Doh (2012) discuss two major forms of communication flow.pdfLuthans and Doh (2012) discuss two major forms of communication flow.pdf
Luthans and Doh (2012) discuss two major forms of communication flow.pdf
fckindswear
 
Indicate whether you agree or disagree with the following statements.pdf
Indicate whether you agree or disagree with the following statements.pdfIndicate whether you agree or disagree with the following statements.pdf
Indicate whether you agree or disagree with the following statements.pdf
fckindswear
 
How exposure to an argument through mass media may have influenced o.pdf
How exposure to an argument through mass media may have influenced o.pdfHow exposure to an argument through mass media may have influenced o.pdf
How exposure to an argument through mass media may have influenced o.pdf
fckindswear
 
Here is the company database--comments can be addedD.pdf
Here is the company database--comments can be addedD.pdfHere is the company database--comments can be addedD.pdf
Here is the company database--comments can be addedD.pdf
fckindswear
 
Describe two ecological roles of fungi. Related concepts decomposer.pdf
Describe two ecological roles of fungi. Related concepts decomposer.pdfDescribe two ecological roles of fungi. Related concepts decomposer.pdf
Describe two ecological roles of fungi. Related concepts decomposer.pdf
fckindswear
 
Differential equations using phase plane analysis. Task 1 (Romeo .pdf
Differential equations using phase plane analysis. Task 1 (Romeo .pdfDifferential equations using phase plane analysis. Task 1 (Romeo .pdf
Differential equations using phase plane analysis. Task 1 (Romeo .pdf
fckindswear
 
Develop a stack in c with dynamic memory allocation. Use the followi.pdf
Develop a stack in c with dynamic memory allocation. Use the followi.pdfDevelop a stack in c with dynamic memory allocation. Use the followi.pdf
Develop a stack in c with dynamic memory allocation. Use the followi.pdf
fckindswear
 
Changes in the economy have determined that for the EZ shipping comp.pdf
Changes in the economy have determined that for the EZ shipping comp.pdfChanges in the economy have determined that for the EZ shipping comp.pdf
Changes in the economy have determined that for the EZ shipping comp.pdf
fckindswear
 
2. July 01 Record the dividend received from the foreign subsidiary..pdf
2. July 01 Record the dividend received from the foreign subsidiary..pdf2. July 01 Record the dividend received from the foreign subsidiary..pdf
2. July 01 Record the dividend received from the foreign subsidiary..pdf
fckindswear
 
You have isolated a new virus, determined it has a lipid envelope,.pdf
You have isolated a new virus, determined it has a lipid envelope,.pdfYou have isolated a new virus, determined it has a lipid envelope,.pdf
You have isolated a new virus, determined it has a lipid envelope,.pdf
fckindswear
 
Write the Java source code necessary to build a solution for the pro.pdf
Write the Java source code necessary to build a solution for the pro.pdfWrite the Java source code necessary to build a solution for the pro.pdf
Write the Java source code necessary to build a solution for the pro.pdf
fckindswear
 
Why is agrobacterium tumfaciens useful to Kant biologists Describ.pdf
Why is agrobacterium tumfaciens useful to Kant biologists Describ.pdfWhy is agrobacterium tumfaciens useful to Kant biologists Describ.pdf
Why is agrobacterium tumfaciens useful to Kant biologists Describ.pdf
fckindswear
 

More from fckindswear (20)

Nessus is a network security toolIn a pragraph describe how it is .pdf
Nessus is a network security toolIn a pragraph describe how it is .pdfNessus is a network security toolIn a pragraph describe how it is .pdf
Nessus is a network security toolIn a pragraph describe how it is .pdf
 
Luthans and Doh (2012) discuss two major forms of communication flow.pdf
Luthans and Doh (2012) discuss two major forms of communication flow.pdfLuthans and Doh (2012) discuss two major forms of communication flow.pdf
Luthans and Doh (2012) discuss two major forms of communication flow.pdf
 
Is the value of the Manufacturing Plant considered a long term or a .pdf
Is the value of the Manufacturing Plant considered a long term or a .pdfIs the value of the Manufacturing Plant considered a long term or a .pdf
Is the value of the Manufacturing Plant considered a long term or a .pdf
 
Indicate whether you agree or disagree with the following statements.pdf
Indicate whether you agree or disagree with the following statements.pdfIndicate whether you agree or disagree with the following statements.pdf
Indicate whether you agree or disagree with the following statements.pdf
 
Identify any relative maxima or minima and intervals on which the fun.pdf
Identify any relative maxima or minima and intervals on which the fun.pdfIdentify any relative maxima or minima and intervals on which the fun.pdf
Identify any relative maxima or minima and intervals on which the fun.pdf
 
How exposure to an argument through mass media may have influenced o.pdf
How exposure to an argument through mass media may have influenced o.pdfHow exposure to an argument through mass media may have influenced o.pdf
How exposure to an argument through mass media may have influenced o.pdf
 
Here is the company database--comments can be addedD.pdf
Here is the company database--comments can be addedD.pdfHere is the company database--comments can be addedD.pdf
Here is the company database--comments can be addedD.pdf
 
Find the IPv6 prefix of the address 20010fc3ca540 a0 10 if the .pdf
Find the IPv6 prefix of the address 20010fc3ca540 a0 10 if the .pdfFind the IPv6 prefix of the address 20010fc3ca540 a0 10 if the .pdf
Find the IPv6 prefix of the address 20010fc3ca540 a0 10 if the .pdf
 
Explain the kinds of information that must be maintained in fixed as.pdf
Explain the kinds of information that must be maintained in fixed as.pdfExplain the kinds of information that must be maintained in fixed as.pdf
Explain the kinds of information that must be maintained in fixed as.pdf
 
Dr. P has a culture of stem cells and she wants them to specialize i.pdf
Dr. P has a culture of stem cells and she wants them to specialize i.pdfDr. P has a culture of stem cells and she wants them to specialize i.pdf
Dr. P has a culture of stem cells and she wants them to specialize i.pdf
 
Describe two ecological roles of fungi. Related concepts decomposer.pdf
Describe two ecological roles of fungi. Related concepts decomposer.pdfDescribe two ecological roles of fungi. Related concepts decomposer.pdf
Describe two ecological roles of fungi. Related concepts decomposer.pdf
 
Differential equations using phase plane analysis. Task 1 (Romeo .pdf
Differential equations using phase plane analysis. Task 1 (Romeo .pdfDifferential equations using phase plane analysis. Task 1 (Romeo .pdf
Differential equations using phase plane analysis. Task 1 (Romeo .pdf
 
Develop a stack in c with dynamic memory allocation. Use the followi.pdf
Develop a stack in c with dynamic memory allocation. Use the followi.pdfDevelop a stack in c with dynamic memory allocation. Use the followi.pdf
Develop a stack in c with dynamic memory allocation. Use the followi.pdf
 
Define a struct type that represents a smartphone. The struct should.pdf
Define a struct type that represents a smartphone. The struct should.pdfDefine a struct type that represents a smartphone. The struct should.pdf
Define a struct type that represents a smartphone. The struct should.pdf
 
Changes in the economy have determined that for the EZ shipping comp.pdf
Changes in the economy have determined that for the EZ shipping comp.pdfChanges in the economy have determined that for the EZ shipping comp.pdf
Changes in the economy have determined that for the EZ shipping comp.pdf
 
A committee consists of 13 Republicans and 16 Democrats. How many dif.pdf
A committee consists of 13 Republicans and 16 Democrats. How many dif.pdfA committee consists of 13 Republicans and 16 Democrats. How many dif.pdf
A committee consists of 13 Republicans and 16 Democrats. How many dif.pdf
 
2. July 01 Record the dividend received from the foreign subsidiary..pdf
2. July 01 Record the dividend received from the foreign subsidiary..pdf2. July 01 Record the dividend received from the foreign subsidiary..pdf
2. July 01 Record the dividend received from the foreign subsidiary..pdf
 
You have isolated a new virus, determined it has a lipid envelope,.pdf
You have isolated a new virus, determined it has a lipid envelope,.pdfYou have isolated a new virus, determined it has a lipid envelope,.pdf
You have isolated a new virus, determined it has a lipid envelope,.pdf
 
Write the Java source code necessary to build a solution for the pro.pdf
Write the Java source code necessary to build a solution for the pro.pdfWrite the Java source code necessary to build a solution for the pro.pdf
Write the Java source code necessary to build a solution for the pro.pdf
 
Why is agrobacterium tumfaciens useful to Kant biologists Describ.pdf
Why is agrobacterium tumfaciens useful to Kant biologists Describ.pdfWhy is agrobacterium tumfaciens useful to Kant biologists Describ.pdf
Why is agrobacterium tumfaciens useful to Kant biologists Describ.pdf
 

Recently uploaded

The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
negromaestrong
 

Recently uploaded (20)

Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
Python Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docxPython Notes for mca i year students osmania university.docx
Python Notes for mca i year students osmania university.docx
 
PROCESS RECORDING FORMAT.docx
PROCESS      RECORDING        FORMAT.docxPROCESS      RECORDING        FORMAT.docx
PROCESS RECORDING FORMAT.docx
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
Role Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptxRole Of Transgenic Animal In Target Validation-1.pptx
Role Of Transgenic Animal In Target Validation-1.pptx
 
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-IIFood Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
 
This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.This PowerPoint helps students to consider the concept of infinity.
This PowerPoint helps students to consider the concept of infinity.
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
 
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
TỔNG ÔN TẬP THI VÀO LỚP 10 MÔN TIẾNG ANH NĂM HỌC 2023 - 2024 CÓ ĐÁP ÁN (NGỮ Â...
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdf
 
Unit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptxUnit-V; Pricing (Pharma Marketing Management).pptx
Unit-V; Pricing (Pharma Marketing Management).pptx
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.ICT role in 21st century education and it's challenges.
ICT role in 21st century education and it's challenges.
 
Unit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptxUnit-IV- Pharma. Marketing Channels.pptx
Unit-IV- Pharma. Marketing Channels.pptx
 
Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17Advanced Views - Calendar View in Odoo 17
Advanced Views - Calendar View in Odoo 17
 

Broadly speaking, the economy consists of households, firms, governm.pdf

  • 1. Broadly speaking, the economy consists of households, firms, government, and financial institutions. Name two parts, areas, or types of government that can have influence over the economy Solution Explanation: - Financial policy: Monetary Policy of any government can have major impact on economy of a nation since it has the power to stimulate the economy and change the way economy behave. Financial policies are performing major part in economy and it can make or break economy. How the taxes are levied can majorly impact economy. Financial policies move control the flow of the money and it can inject new money flow in system to revive it. - Fiscal Policy: Another major player in stimulating and impacting economy at it best is fiscal policy. Fiscal policy mainly works to overcome from struggling economy and reduce the inflation in market. Interest rate is popular tool to control the flow money through changing interest rates.