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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT



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PART A: THE BUSINESS ORGANISATION, ITS STAKEHOLDERS AND THE EXTERNAL ENVIRONMENT 
 
56
 
BPP Tutor Toolkit Copy


 
57 
C H A P T E R 
TOPIC LIST 
SYLLABUS 
REFERENCE 
1 The structure and objectives of the economy 
A4 (a),(d)
2 Factors which affect the economy 
A4 (e)
3 The determination of national income 
A4 (b)
4 The business cycle 
A4 (b)
5 Inflation and its consequences 
A4 (c)(i)
6 Unemployment 
A4 (c)(ii)
7 The objective of economic growth 
A4 (c)(iii)
8 Government policies for managing the economy 
A4 [a],(c)
9 Fiscal 
policy 
A4 (e)
10 Monetary policy 
A4 (e)
11 The balance of payments 
A4 (c)(iv)
The macroeconomic 
environment
In this chapter we present an overview of the goals of macroeconomic 
policy concentrating on fiscal policy and monetary policy.
Section 1
considers the circular flow of income in the economy and 
this leads us on to the explanation of supply and demand in 
Section 2.
In macroeconomics we are concerned with spending, investment, 
price levels, employment and output in the economy as a whole 
(
Section 3
). 
Broadly speaking, macroeconomists divide into the two camps of the 
Keynesians and the monetarists. These two camps have had differing 
ideas about how national income can be made to grow, how full 
employment can be achieved and how booms and slumps of trade 
cycles can be smoothed out (
Section 4
). 
There are also different views about the causes of inflation and the 
effectiveness of government measures to stimulate the economy 
(
Sections 5-7
). 
We consider the Government's policies (

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