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causes such as labor productivity, physical capital, energy or materials) is referred to as intensive growth.

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Economic growth is the increase in the inflation adjusted market value of the goods and services produced by an economy over time.

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2001 2002 2003        +7%   +9%   +10%

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Monetary policy is typically implemented by a central bank, while fiscal policy decisions are set by the national government. both monetary and fiscal policy may be used to influence the performance of the economy in the short run.

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policy through raising or lowering interest rates is to affect people's and firms demand for goods and services.

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it has an effect on taxes and spending when it comes to governments decisions.

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costs of living
- Rapid changes intechnology
- Recessions
- Inflation
- Disability
- Undulating business cycles

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- money supply
- national debt
- exchange rates
- demand pull effect
- cost push effect

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Fiscal policy is the means by which a government adjusts its spending levels and tax rates to monitor and influence a nation's economy. It is the sister strategy to monetary policy through which a central bank influences a nation's money supply.

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How the government deals with inflation rates?

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How the government deals with inflation rates?

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Reducing spending is important during inflation, because it helps halt economic growth and, in turn, the rate of inflation.

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CPI has had an increase over the years since 2001 through 2003. measurement of inflation, the rate of increase of a price index.

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2001  2002  2003           5%    7%    10%

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How does the government deal with unemployment rate?

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How does the government deal with unemployment rate?

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the government reduces unemployment by boosting economic growth. The primary method is expansionary monetary policy. That's when the Federal Reserve changes monetary policy by reducing the fed funds rate.

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2001 2002 2003
6%   4%   3%

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Unemployment percentage has been decreasing over the years since 2001 through 2003,which is expected to continue to drop unless the government finds a way to resolve the decrease.

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Through its monetary policy, a central bank can affect the demand in the economy, but it has no power to affect the supply. When growth falls, the central bank may reduce the repo rate.