1 Economic Policies on 21st June 2011, 10:13 am
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The governments of all countries are expected to promote the economic growth and economic welfare to improve the standard of living of the citizens. Governments are also expected to maintain law and order and ensure security of the country. Economic growth is generally measured in terms of GDP-Gross Domestic Product. GDP is the total value of goods and services produced in a country. An increasing GDP indicates increasing economic activity, which in turn generates more income. When employment and income of the citizens increases, their standard of living also increases.
The policies that governments pursue to encourage economic growth and welfare are called economic policies. These policies can be broadly classified into:
* Fiscal Policy
* Monetary Policy