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Economics Assignment范文:政府对经济的影响 Effects of the Government on the Economy(6)

时间:2017-12-27 15:40来源:www.ukthesis.org 作者:英国论文网 点击联系客服: 客服:Damien
 
Keynesian economics proceeds on the assumption that price level given but what can happen if the price level change for example when the economy is near full employment and there is no longer space capacity to make companies think before raising price of products or increasing wages of their employees. On the other hand Keynesian government should be able to tackle unemployment issues otherwise effects of unemployment could reduce production of goods.
 
According to Monetarism theory "the government's proper economic role is to control the rate of inflation by controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over longer periods and that objectives of monetary policy are best met by targeting the growth rate of the money supply ".
 
Finally we can conclude that there is much about which all economists agree but there are some important differences of opinion, both in the positive economics of how the world we are living actually works and in the normative economics of how the government should behave in the market. Due to market power economist intend to play a role in the market by solving problem faced by consumers such as price rises therefore they intend to have price ceiling for each product and I have learn economic is just not a science subject it is there to reconcile the conflict between people virtually unlimited demand with society limited ability to produce goods and services to fulfil these demands.
 
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