For this task you need to recognise the role of government in establishing the business climate through the use of incentives to business such as cutting the business rates of tax or through regional development policies. Regional and local government also have business generation at the heart of what they do in promoting local economic wellbeing and there are plentiful illustrations of how they create business micro environments. Outline the role of government in creating the business climate This provides evidence for P4 Produce a table showing; “The Government’s role in the economy” If completed you need to write a paragraph on the competitiveness of British industry and explain what is meant by Equality Write about The Role of Government What is the difference between the European Government & The UK National government? How does Local Government help business? http://www.bbc.co.uk/news/business10730689 Economic Growth – when the economy is growing the nation earns more money each year. The value of the goods and services produced in the UK is called GDP-Gross Domestic Product It can be calculated 3 ways; By: Expenditure Income Output If we work harder or invest in more machines/education that will help us produce more. This will increase productivity. The more we produce, the more we earn and the more we have to spend; our Standard of Living should hopefully improve as well. Full Employment occurs when everyone who wants a job can have one, this is beneficial to the local community, businesses and government – Why? Unfortunately people may lose jobs because of Seasonal Unemployment – e.g. a ride attendant at Alton Towers Technological Unemployment – machines replace the skills of humans Cyclical Unemployment – Recession causes lack of demand for products or services Structural Unemployment – whole industries change/decline – e.g. Bradford Textile Industry What is the difference between the RPI and the CPI? What do you understand by these terms? What is the base rate at the moment? What is the MPC? What is the Balance of Payments? This provides evidence for P4 You have told me about why the government wants: Steady economic growth Full Employment Sustained Low Inflation A surplus on the balance of payments Finally you need to export a mind map into word – this needs to explain the economic cycle You need to include notes on consumption, investment, interest rates, business confidence, exports, imports and expenditure on new projects.