CIMA BA1 Syllabus A. Macroeconomic And Institutional Context Of Business - Economic Growth And The Trade Cycle - Notes ^{10 / 17}

Government action

1. In recession?  

   Boost demand by:
    
   - Increasing Money Supply
   - Reducing Interest Rates
   - Lowering tax

2. In a Boom?

   Reduce demand by:

   - Increasing Tax 
   - Increasing Interest Rates 
   - Reducing Public spending