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| | |-+  5. Role of government in an economy
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Author Topic: 5. Role of government in an economy  (Read 524 times)
jeet
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« on: April 08, 2009, 12:26:47 PM »

Conflicts in Economic Objectives
Designed policies are difficult because a policy designed to achieve one economic objective might conflict with a policy designed to achieve another objective.

While a government is caring for inflation restrictions measures such as increase in rate of interest may be applied and in which in turn may discourage investment and employment

Increase in government spending in decrease unemployment may lead increase in income and wages it therefore increases inflation as well as increase in imports which causes the bop deficit.

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« Last Edit: November 01, 2009, 12:36:29 PM by Tutor » Logged
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