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1 Introductory concepts 2  Market mechanism  3 Elasticities  4 Market structures 5  Market failures  6  Macro economic activity/eco growth  7 Inflation 8  Employment & unemployment  9  External Stability  10  Income distribution 11.Factors affecting economy  12  Fiscal/Budgetary policy  13  Monetary Policy   14 Aggregate Supply Policies  15 The Policy Mix

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Strengths and weaknesses of Budgetary Policy

A strength of a policy refers to an aspect that makes it a particularly powerful tool (when compared to another policy for example).  Similarly, a weakness or constraint of policy refers to an aspect that makes it less effective or powerful.  Success/failure of policy refers to an evaluation of how well the policy has performed in trying to achieve its stated goals.  A knowledge of strengths and weaknesses of policies will often help us to determine how successful policies have been over time.

Some strengths of budgetary policy include the following:

Some weaknesses of budgetary policy include the following:

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