ROLE OF GOVERNMENT

IN MARKET ECONOMY
By:

Amara Asif (28)

Faiza Malik (26)

Syed Ahsan Zaidi (08)

Umair Awan (13)

ROLE OF GOVERNMENT:
Direct services

ENVIRONMENTAL
PROTECTION:

MAINTAINING COMPETITION:

PROTECTING ECONOMIC
STABILITY:

MICROECONOMICS:
The term microeconomics is
related to utility:

scarcity

MICROECONOMICS:

Demand and supply

Opportunity cost

MACROECONOMICS:

FISCAL POLICY:
Fiscal policy describe the
effect on aggregate economy
Of overall level of spending
And taxation.

TYPES OF FISCAL POLICY:

Expansionary policy:

Increased government
Spending, lower taxes to
create jobs and to
increase aggregate
demand.

TYPES OF FISCAL POLICY:

Contractionary policy:

Increasing taxes,
decreasing government
expenditures or both in
order to fight
inflationary pressures.

MONITORY POLICY:
Goals:

Maximum employment
Stable prices
Moderate long term
interest rate

MONITORY POLICY
Major

tools:

Reserve ratio

Open market operation