Government Use of Macroeconomic Policy to Increase Economic Welfare

Essay

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Government use macroeconomic policy to increase economic welfare.....................................3
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Government plays a vital role for the success of economy, they have taken major steps to
increase welfare of economy. Macroeconomics is concerned with policies made by government
and top authority, issues, challenges and objectives that affect the whole economy. The present
report will be based on macroeconomic policy made by government such as monetary policy and
fiscal policy. The study will provide detailed information about success of UK government from
last 10 years and challenges faced by them. It has been noted that there are various types of
macroeconomics but all of them deal in some wat with how people act and what they do in the
surrounding area. Nowadays, government are taking major steps and initiatives such as increase
the jobs for people, reduce poverty and many more.
Growth of economy may be controlled in such a way that it can increase the economic
stability, control unemployment rates and finance related to international terms and value
indexes. These are the macroeconomic topics that are being addressed when talking about
policies. To conclude, this is a very detailed and deep field of financial planning that have
addressed all the previously listed challenges and problems. In addition to this, it has been noted
that the economic well-being is totally assessed by the additions or surpluses made by customers
and producers both. UK economy’s well-being is determined by knowing about surpluses related
to clients and producer. With the help of excessive demand, one can easily evaluate the influence
changes and market condition and trends. Any drastic change can be known by demand of
particular thing, in the UK, economy development may be controlled in such a way that by
adjusting taxes, inflation, interest rates and spending of government one can know about
macroeconomics.
1. Government use macroeconomic policy to increase economic welfare.
UK is a state where the top authority and government places a strong concentration on
the betterment of society and majorly focus on development and welfare of its residents. In other
words, UK government focus on promotion of resident’s social and economic well-being, which
is called as a welfare state (Loayza and Pennings, 2020). In addition to this, UK government says
that a healthy economy should be in a favour of residents or citizens. A positive and supportive
economy is built on ideals such as equality, equal access to opportunities, fair wealth
distribution, social welfare, providing benefits and social responsibilities towards poor and needy

people. The major, basic and important feature of every welfare state is social insurance and
benefits related to it. The government has taken major steps in order to offer total well-being of
citizen of UK as a whole in terms of allocation of goods and resources and market structure
related to economic welfare (Alesina, 2018). An attempt has been made by them in field of
finance to measure the advantages and disadvantages of making financial reforms so that support
can be provided to society as a whole. This can be done through informing public policies such
as fiscal policy and monetary policy. In today’s era, individual well-being and importance of
various principles, values and moral and welfare ideas are major and hot topic concerns in
economics welfare.
The foundation of welfare economics is the microeconomic utility theory to be applied.
Utility means ability of goods or services to satisfy a requirements and wants of people.
Nowadays, in competitive market where competition is more because of changing needs and
demand laws, a slight change in demand laws the will influence supply of products or service
(Ryan-Collins, 2021).
The major goal of this policies and welfare economy especially of UK, is to provide
benefits and create a positive economic environment in which people may live in harmony and
peace with each other without any issues and without promoting negative environment. years ago