What's the difference? (1 Viewer)

[lyounamu]

What's the difference between

Counter-cyclical government policies and demand management policies?

 

[McLoving]

it deals with government cyclical settlement
that one

the other one is based on demand as factor

 

[lyounamu]

I am still not sure...

Please elaborate further?

 

[swathard]

counter-cyclical government policies are ones that are being implemented at the moment by the government since we are in an economic downturn. here, in this phase of the economic cycle, governments would be attempting to stimulate the economy. on the other hand, if the economy was in an upswing, the government would try to 'cool it down' a bit. these types of policies are used to COUNTER the economic cycle, to go against what is happening in attempt to improve economic conditions..

demand management policies are implemeneted to control the level of demand in the economy. if there was a shortage of demand, governments pretty much aim to increase it in the economy and vice versa.

i hope i was of some help...