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Enterprise Economics for Business

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Added on  2019-12-28

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Economics for Business TABLE OF CONTENTS INTRODUCTION 1 (i) Use of supply side policies by government 1 (ii) Use of fiscal and monetary policy for slowing economic growth 4 CONCLUSION 8 and REFERECES 10 INTRODUCTION Use of quantitative methods for developing a business is enterprise economics. Private and public sector has to adopt those plans which will help in contributing massively to economic welfare of the nation and its citizens. Notions must be based on managing aggregate supply and aggregate demand of products and services

Enterprise Economics for Business

   Added on 2019-12-28

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Economics for Business
Enterprise Economics for Business_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1(i) Use of supply side policies by government............................................................................1(ii) Use of fiscal and monetary policy for slowing economic growth.........................................4CONCLUSION................................................................................................................................8REFERECES.................................................................................................................................10
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INTRODUCTIONUse of quantitative methods for developing a business is enterprise economics. Strategiesand practises are based on all policies and reforms that define economic structure of anorganisation. A country develops when collective growth is initiated. Private and public sectorhas to adopt those plans which will help in contributing massively to economic welfare of thenation and its citizens. Notions must be based on managing aggregate supply and aggregatedemand of products and services. Stabilised or developed country is one which has lowestunemployment rates and more income opportunities. Limiting agents of progress are negligiblehere. Hence, economics for businesses are developed for achieving a developed nation status inglobal markets. This report aims to give a broader perspective on steps and measures agovernment has to take for speeding up growth and for temporarily slowing down the same.These facts are elaborated with help of AS and AD analysis. (i) Use of supply side policies by government Economic growth is essential for financial strengthening of country. Supply side policiescan be used by governments for enhancing this growth. Gross domestic product is a componentor measure of economic growth. Basically, improvements in productivity and core competenciesof firms can be increased by these supply side policies (Buckley, 2016). Aggregate supply isshifted correctly with supply side policies. Following advantages are gained by use of suchpolicies by government.1.Reduction in inflation: Total amount of goods and services that are supplied and soldduring a particular time span is aggregate supply. Domestic economic plans must befocused on utilising maximum exports and minimum imports. Inflation is sudden rise inprices of commodities and services that are utilised by citizens of a country. It is moralresponsibility of government to reduce inflation (Koo, 2013). Tools like supply sidepolicies are helpful in fighting recession and inflation. Aggregate supply is shifted toright when these policies are implemented.2.Enrichment of employment scales: Unemployment is a basic problem after poverty inmany developing countries. Supply side policies are oriented with an objective to reducestructural frictions that cause unemployment. Investments in education and training1
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improve competency levels of individuals. This reduces lack of skills and people willexplore employment opportunities. 3.Improved economic growth: Incentives are improved with application of supply sidepolicies. Investments are increased and researches are conducted by government. Ratesfor sustainable development increase with help of government. Major component of thisprogress is aggregate supply (AS). Economic growth as a whole is balance betweenexports and imports or demand and supply of products and services. If supplies are lessand demands are more, then companies can face debts and loans in markets (Granger,2014). On the contrary balance situation gives equal opportunity for organisation andmarket to progress together.4.Betterment of trade: Supply side polices help in increasing productivity. Competition ishealthy and motivating. Payments are made in an orderly manner. Companies can feel abalance in incoming and outgoing of capitals. During inflation periods, these policies areless effective or need more time for creating an impact whereas during free periods theyact for rapid economic developments.Government when feels that economic growth is hindered or slow then below mentionedsteps can be taken with help of supply side policies for maintaining feasible economic growth.Privatisation: It is believed that private sector undertakings have much better grasp ofbusiness than public sector. Perseverance for private sector is based on positivity, growth andmaximum profits (Leigh and Blakely, 2013). For example, TESCO is a private sectororganisation known for its super markets and exemplary departmental services. It has about 800stores solely in UK. No public sector organisation has reached such a limit. Privatisation helps inearning more and efficient businesses can be produced. Their main motive is to earn more profitswith least production costs. Aggregates demands increases with private sector products andservices.Deregulation: Supply side policies can be used to reduce barriers that are held fordiscouraging new entries to markets. Deregulation will help in reducing such situations.Competition gets refreshed when new comers with vibrant ideas start functioning (Treyz, 2013).Moreover, it also helps in development of existing companies. Lethargy for innovation isvanished when a threat from new entries is felt. This perspective helps safeguarding consumers2
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