Answer to Question #119219 in Macroeconomics for Baf Koi

Question

All governments will have various macroeconomic objectives and will intervene in the economy to try to achieve these: For example, the government may want to achieve: Full employment, economic growth, stable prices and an appropriate level of export spending relative to imports. To what extent do you think as a business manager the government of PNG is successful at managing the economy at the moment on the basis of the above objectives?

Answer 1

I think this will happen when a government provides an economic environment which allows businesses to trade easily,encourages growth and planning.

Therefore through these decisions by the government on it's priorities will influence the combination's of policies it uses and this in turn will affect a firms costs and demand.