CHAPTER 9
PUBLIC POLICIES
ECO415- PRINCIPLE OF ECONOMIC
Prepared by:
NORFATIHAH BINTI
ISAMAIL
, Public policies
1. fiscal policy
Sources of fiscal policy
tax and non-tax revenue
Government expenditure: operating and development*
Expansionary and contractionary fiscal policy
2. monetary policy
Monetary instruments*
Bank rate
Reserve requirement
Open market operation
Moral suasion
Expansionary and contractionary monetary fiscal policy
, ECONOMIC FUNCTIONS OF
GOVERNMENT
Government will adjust the allocation of resources to
alter the composition of the domestic output
Government will assist the private sector to ensure
economic stabilization by controlling unemployment
and inflation, which caused by business fluctuations
Governments will create a business environment,
which encourages competition among producers.
Governments will redistributed income and wealth
among population
Government will provide a legal framework and a
social framework for the effective operation of an
economy.
PUBLIC POLICIES
ECO415- PRINCIPLE OF ECONOMIC
Prepared by:
NORFATIHAH BINTI
ISAMAIL
, Public policies
1. fiscal policy
Sources of fiscal policy
tax and non-tax revenue
Government expenditure: operating and development*
Expansionary and contractionary fiscal policy
2. monetary policy
Monetary instruments*
Bank rate
Reserve requirement
Open market operation
Moral suasion
Expansionary and contractionary monetary fiscal policy
, ECONOMIC FUNCTIONS OF
GOVERNMENT
Government will adjust the allocation of resources to
alter the composition of the domestic output
Government will assist the private sector to ensure
economic stabilization by controlling unemployment
and inflation, which caused by business fluctuations
Governments will create a business environment,
which encourages competition among producers.
Governments will redistributed income and wealth
among population
Government will provide a legal framework and a
social framework for the effective operation of an
economy.
