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    Economic Policy

    Economic policy is a policy implemented by the government to sustain economic growth and monitor economic systems. It is implemented in order to control interest rates, national ownership, and labor markets. There are different types of economic policies that serve varying purposes. Macroeconomic policies effect economic activity overall while microeconomic policies aim to improve the activity of certain firms, markets, and industries. Some policies are created to aid in economic growth, which therefore relates to development economics.

    In order to keep a stable money supply and avoid inflation, macroeconomic stabilization policies are implemented. Monetary policy is when policies are put into effect to control the cost of availability of money and credit. The objectives of this type of economic policy are to reduce the level of unemployment and stabilize the national currency. Other types of policies include trade policies and regulatory policies.

    The objectives leading to the enactment of economic policies are the policy goals, which are the outcomes the policy makers want to achieve. Examples of economic policy objectives are price stability, effective income and wealth distribution, environmental damage control, and increase in employment rate. Governments use policy tools such as tariffs and labour market regulations to obtain these objectives.

    Policy makers have to be cautious of the negative consequences that can occur when their objectives are obtained. An economic policy that is successful in achieving its objectives, such as economic growth, can have negative effects on the environment. Conflicts can also occur between trying to increase employment rate and achieving a reduction in inflation.

    Economic policies change economic activity in three ways: expansionary, when revenue is reduced and/or expenditure is increased; contractionary, when revenue is increased and/or expenditure is decreased; and neutral stance, when the budget is balanced.

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    BrainMass Categories within Economic Policy

    Government Policies

    Solutions: 35

    Government policy refers to the actions that governments take to resolving economic issues and regulating the economy.

    International Policies

    Solutions: 77

    International policies are policies that are adopted by different countries and follow international laws.

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    Extensive discussion of the "wealth effect"

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    Trade Regulations & Industrial Policies: WTO

    Review the World Trade Report 2012 from the WTO on trade and public policies (the executive summary is available for review as well) at the WTO Research and Analysis webpage. As you go through this resource, think about what the significance of both tariff and non-tariff barriers to trade are in today's economy, and how they hav

    Budget Emergency and Debt Cycle

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    Market Failure: Poverty and Income Inequality

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    E-Business Security

    One of the biggest hesitations to E-business is the potential security threats. As an IT-manager what steps would you take to ensure your businesses online system was safe for customers to use?

    Are the given statements true or false?

    Assume that the demand for plastic surgery price is inelastic. Are the following statements true or false? Explain your answer 1.When the price of plastic surgery increases, the number of operations decreases. 2.The percentage change in the price of plastic surgery is less than the percentage change in quantity demanded.

    Economics of Health

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    Effects on Demand in a Competitive Market

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    Apply the concept of elasticity on a particular product.

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    Coase Theory: Mandated Mercury Emissions

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    Lobbyists and the Media

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    The Medicare Payment Advisory Commission

    The Medicare Payment Advisory Commission recently voted to recommend to Congress to institute a set of pay-for-performance incentives for providers serving Medicare patients. This would include paying bonuses to providers as incentives to meet or exceed certain quality indicators. As an example, consider the following: Diabetics

    Why Zero Economic Profit is Called "Normal"

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    Seasonal Prices of a Resort

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    Pricing Strategies for Firms with Market Power

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    Prisoner's Dilemma

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    Transport economics, cost functions, total cost, and marginal cost

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