Economic Policy And Economic Policies Essay

1379 Words Apr 18th, 2016 null Page
People tend to hear “economic policy” but, do they really know the meaning of it? Economic policy is, “a course of action that is intended to influence or control the behavior of the economy.”(Economic Policy)These policies are controlled by the government; they tend to make the decisions of the amount of money being by the government spending and taxation, the redistribution of income from rich to poor, and about the supply of money. The success of economic policies can be evaluated by positive and normative economics. Positive economics are, “attempts to describe how the economy and economic policies work without resorting to value judgments about which results are best.”(Economic Policy) In the contrary normative economic s, “…involve the use of value judgments to assess the performance of the economy and economic policies.”(Economic Policy) There are many goals set by positive and normative economics in economic policy but, only a few have been widely accepted. The goals for economic policy are economic growth, full employment, and price stability. They are very important because economic growth means that incomes of consumers and “firms” are increasing, full employment is that every individual is able to find labor, and price stability is keeping prices still meaning there is not inflation (increase in price of good and services) or deflation (decrease in price of goods and services). The importance of supply-side economics, demand-side economics, and monetary policy…

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