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Economics For Business - Assignment Sample

   

Added on  2020-12-29

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Economics for Business

Table of ContentsINTRODUCTION...........................................................................................................................1Main body...............................................................................................................................1CONCLUSION................................................................................................................................8REFERENCES ...............................................................................................................................9

INTRODUCTIONThe economic conditions play a very crucial and vital role in the development of a firmas well as the government. The government will see through an effective handling of operationsthat will help in better rise in the economic stability of nations as well as an organisation. Thegovernment will look out for the innovative measures to maintain the economic viability andhandling of operations that will help in good rise in the financial stability and handling of theoperational capability of an organisation. This will help in good rise in capability and handling ofbusiness operations that will help in effective growth and development of operations and actionsthat are followed by the European government that will help in suitable rise in operationalcapability (Gelli, A. and et.al., 2015). For this, the government will adopt and follow the Keynesian and Classical Supply SidePolicies that will help in good handling of the economic issues for the long-term growth anddevelopment. Besides this, it will help in good handling of various sorts of problems that arefaced by an organisation or a nation while operating in an international market place.Main bodyThe economic conditions must be taken in consideration by the government for long-termdevelopment and increase in the functionality of an organisation that will help in good rise in theoperational capability. The firm will see through an effective and better meeting of goals andactions that will help in suitable rise in operational capability and thus will help in bringingfinancial stability in the European countries (Picard, 2014). To handle the economic constraints and the effective handling of wide range ofoperations that will help ineffective management of the financial activities, the government willadopt use of Neo Keynesian and classical supply side policies that will help in good handling ofthe operations and thus will support a good handling of functions and thus will aid to authority tobring the financial stability.Neo Keynesian Theory and PoliciesIt is a form of macroeconomic theories that help in the good rise in meeting of policiesand actions on short run. It helps the government or the economies to handle wide range ofoperations to be handled and managed by the European government. This is beneficial in loweconomic growth phase such as inflation and recessions that impacts economy and businesswithin the nation in a very adverse way. 1

This theory was presented after the Great Depression in European continent that hasaffected the economic viability of various countries. This has helped in incorporating theconcepts of aggregated supply management with classical economic factors and policies that arefollowed by government to maintain the financial stability. Besides this, it helps the governmentto set monetary policies for banks and fiscal policies. The Neo Keynesian modal of economicmanagement has been the standard model of maintaining economy for the European countries inPost World War II and Great depression era (Gelli, A. and et.al., 2015).It helps in meeting the aggregated demands and lowering negative impact of fallingeconomy by increasing the governmental expanses and reducing the taxes in order to handle therequirement of citizens. This is a beneficial tool to achieve the optimal economic performance bythe government and reduce financial glitches that has been faced by an organisation. Although, being the “demand side” theory, it helps in gaining a good rise in economyover a short run period, it has the effect for long term that will help in effective increase inoperations and thus facilitates good handling of the operational capacity. For example, the Keynesian theory that is implemented by the European government inpost Great depression phase has lead an impact on various countries and reduce the effect ofdecreasing economic stability that has impacted the growth and rise in operations of firm in abetter way. The policies and principles of economic viability that are implemented then, are stillbeen practice with certain modification and alteration that will help in good rise in operationalcapability and financial stability that has been faced by an organisation.Various sort of graphs are been presented by Keynes in order to showcase the impact ofthe different factors of economic policies and functions especially in the case of long runaggregated supply (LRAS) which has helped in the effective growth of the development policieswhich are been followed by the firm or the government (Picard, 2014). Some graphs anddepictions that are been taken in thought process are as follows:Classical supply theory:2

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