What is Mixed Economy | Types | Capitalist and Socialist Economy

 Mixed Economy Mixed economy is an economy which combines the element  of both the capitalist and socialist economies. It attempts to combine the best features of both capitalism and socialism while excluding the Demerits of Both.   Two types of Mixed Economy      1. Government does not directly undertake Production activity. This exists in most of the developed countries such as the USA, UK, etc.     2. Where Government not only Regulates the Private Sector, But also Participates in the Production activities.     Features of Mixed Economy Co - existence of Public and Private Sectors. Features of both Capitalism and Socialism. Government regulates and controls the Private Sectors. Price mechanism Profit Motive. Capitalist Economy   In Capitalist  form of economic system the means of Production and Distribution are Privately own,  and Production is guided Largely through Operation of markets.    ...
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What are Business and Economic Policies

 Business and Economic Policies

Economic Policies not only directly affect the business environment, but they also change the aggregate demand which causes a huge impact on the business activities. Different factors which can change aggregate demand are :

  • Policy mix : Combination of Monetary and Fiscal Policy in use at a given time.

    • Policy Mix Consist of Decrease in Government Spending and Increase in Money Supply would Favour investment spending over Government Spending.

     

  • Stabilization Policy is DIRECTLY Proportional to Aggregate Demand .

    • Stabilization Policy : Maintaining a healthy level of economic growth and minimal Price changes.




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