to achieve economic growth

to control price inflation

to achieve full employment

to achieve a balance between exports and imports

overall economic policy

industry policy

environment

social policy

foreign policy

investment level / the mutiplier effect / inflation / savings confidence/interest rates/exchange rates

expenditure planning

revenue raising

borrowing

increasing spending

reducing taxation

interest rate

reserve requirement

exchange rate

demand/confidence falls

investment begins unprofitable

orders are cut; inventory level reduced

some companies begin to insolvent

capacity and labor become fully utilized

AD↑——P↑

high investment

PPI (producer prices index)

RPI (retail prices index)

CPI (consumer prices index)

redistribution of income and wealth

balance of payments effects

uncertainty of the value of money and prices

the costs of changing prices

economic growth and investment

demand pull factor

cost push factor

import cost factor

expectations

excessive growth in the money supply

Unemployment rate = (number of unemployment)/ (total workforce) ×100%

flows into

flows out of

loss of output

loss of human capital

increasing inequalities

social costs

burden of welfare payments

real wage unemployment

frictional

seasonal

structural

technological

cyclical/demand defient

multiplier

aggregate supply

AS=C S T

Total demand

AD=C I G (X-M)

Fiscal policy

expenditure

income

public sector net cash requirement

fiscal deficit

VAT

ad valorem tax

Monetary Policy

Quantitative easing

Minimum reserve requirements

inflation

inflation gap

=AD-AS=I-S

balanced

stagflation

economic recession

inventory levels

bankrupt

balance of payments

hyperinflation

barter

Configuration

(Economic prosperity

layoffs