Why UK Government Can Promotes To Evalueve Economic Growth?

Fiscal, monetary and supply-side are some examples of the policies which government can promote to achieve economic growth or increase real GDP. Practically to increase the economic growth, it involve in either aggregate demand or aggregate supply. Demand side policies will comes into place and act as an important role during a recession or market stagnant. It is aim to increase aggregate demand and if there is an excess space, it can engage a role in increasing the rate of economic growth. When settling long run growth in productivity, supply side policies will be implemented.
This is to affect the economic activity and to make a better working unique market place whereby a government can revise the rate of taxes, different variety of taxes
They foresee UK economy would have a higher economic growth and lower inflation in the future. Unemployment would continue to go down slope and inflation would remain low regardless the growth in household income. It also foresees trade deficit would be vanished by the year 2001. In order to achieve this series of development, it propose to the UK government to keep away from increasing their expenditure and if needed make sure there was an increase in the rate of interest to remain inflation of the government goal. The major reason for UK government to spend more is due to its ageing population as people tend to lives longer, it will increased in it health care treatment, pensions and living conditions are needed. Also with the advances technology to improve standard of living for the ageing population, higher government will be spending more on purchasing computers in schools. Thus, this will increase demand for the technology companies as they earn extra bonuses. In return, they might employ more staffs and promote the current ones. Promoting employees means increasing in salary which they are able to spend more with their extra income. This leads to creating more jobs for retailing and entertainment industry and at the same time contribute to economic growth for the country. The goal of this policy is for the government to balance
It consists of changes in the money supply, rate of interest and the exchange rate. Rate of interest will be the core tool using in the monetary policy. Lower interest rates promotes investment, people will spend more and bring down the cost of borrowing. The Monetary Policy Committee (MPC) of the Bank of England get down to the government target level at RPIX of 2.5%. Rate of interest that they introduce is called repo rate (sale and repurchase rate). These interest rates are loans to financial institutions such as Lloyds TSB and Barclays. Hence, any decision make by MPC will impact on the financial system. Methods that changes in interest rate can influence the prices, output and employment which is named as transmission