Explore BrainMass

Explore BrainMass

    Affect of Fiscal and Monetary Policy on Airlines Industry.

    Not what you're looking for? Search our solutions OR ask your own Custom question.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    How has the monetary and fiscal policy affected the employment rates of the airline industry

    LIST SOURCES PLEASE.......

    © BrainMass Inc. brainmass.com March 4, 2021, 7:55 pm ad1c9bdddf
    https://brainmass.com/economics/monetary-policy/affect-of-fiscal-and-monetary-policy-on-airlines-industry-132329

    Solution Preview

    THE EFFECT OF MONETARY AND FISCAL POLICY ON THE AIRLINE INDUSTRY
    Monetary policy:
    As there is a tight monetary policy there is a leash on spending and greater incentive to save, so the demand for airline services goes down. This adversely affects the employment rates of the industry.

    Fiscal policy:
    1. If the government reduces taxes or increases its spending, the income and the GDP goes up creating greater demand for the services of the airlines industry and improve employment rates.
    2. If the government spends directly on the airlines industry by giving cash compensation payments, loan payments, loan guarantees and delay in tax payments, there will be a substantial improvement in the health of the airline industry and this will lead to an improvement in employment rates.
    3. Through the fiscal policy ...

    Solution Summary

    This solution talks about the monetary and fiscal policy in the context of the airlines industry It also explores how these policies affect employment rate in the industry.

    $2.49

    ADVERTISEMENT