Macroeconomics Coursework :: Economics

It is the role of every government to safeguard its people in all matters including controlling the economy. Every economy faces different challenges including the business cycles that may emanate from the global market. In this paper we try to examine measures taken by the UK’s coalition government in trying to ensure that the economy benefits every citizen and reduces the overall burden to it. We consider the recent comprehensive review on spending. Many countries in the world have been suffering a recession in their economies and UK has not been an exception. A recession is a macroeconomic term describing one of the two business cycles that economies go through. The business cycles is characterized by either a boom where there are more business activities carried with a rapid economic growth and points of recession where there is retardation min economic growth. Various aspects and factors contribute to economic growth, which is measured through GDP. This factor may include savings, investments government spending plus other factors within either an increase or a decrease. Reduction in spending may lead to a recession while a n increase in spending may lead to expansion that is a boom in the economy. According to Maynard, John (1930), various measured may be taken by government in order to improve the state of the economy and probably move the economy from a recession or even speed this process. Various players can play a role in improving the economic though as Keynesian theory explains the government plays a great role in this compared to other players like the private sector. The government can therefore use various measures through its budgeting policies, fiscal policies and monetary policies by the Central Bank. It’s on this basis that the UK coalition government has proposed slashing of its budget to reduce the overall spending in the economy. Taxpayer isn't a â€Å"first-time homebuyer† with respect to that purchasing a new home unless he or she delays the purchase until the three-year period since his previous home ownership has ended. An individual whose principal residence is in rented quarters (and has been for at least three years) but who owns a vacation home can qualify as a first-time homeowner, because he has had no ownership interest in his principal residence. The Committee Report adds that the individual must not have had an ownership interest in a principle residence in the UK during the three-year period before the purchase of the home to which the credit applies.