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Competition and the Economic Environment Assignment 2: Economic policy SHAN JI The economic change of the government would affect mainly about three parts: demand from customers, the costs of running a business and affect on workers and supplies. The economic role of the government will depend mainly on the political ideology and structures that prevail in the country. Government believed that the economic system could be directed through aggregate demand-with changes in fiscal policy being the most appropriate way of doing this. Government accepts responsibility for improving the economy. They with the market economy to exist, but will from time to time try to improve inflation, or employment, or trade etc. in recent years the government has used interest rates if they wish to stop inflation rising; tried to keep income tax down because they believe this helps with employment/jobs and helps to create new business. The government also try to encourage the...

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