Economic policy
It refers to the measures set by the government to cover the system responsible for setting taxation levels, the supply of money, government spending, and interest rates in labor markets and other areas the government intervenes. They are considered to be government tools put in place to attain sustainable economic development in the country.
Answer
It is the appropriate role of the government to implement policies in an attempt to stabilize macroeconomy. The government uses policymakers and the central bank to keep the economy steady, growing, and less volatile. Close monitoring of the business cycle is done by the policymakers who, in return, make changes to the fiscal policy. In contrast, the central banks control the monetary policy by regulating money supply and interest rates. Fiscal policy can increase or decrease the aggregate demand in an economy depending on the current situation. When the two systems are coordinated and manipulated well, maximum economic performance is achievable.
- Offer advice for improving risk management for Southwest Airlines
Risk management
Risk management refers to the criteria of identifying potential risks in advance, analyzing and understanding them, then outlining the precautionary measures you will take to minimize their impact or stop the threats from affecting your investment. Investment decisions usually come with the risks involved. It is always wise to forecast and analyze them before putting the investment into action.
Answer
Southwest airlines can improve its risk management levels by implementing the following measures. They will help the airline company to realize more massive profits. Due to their large crowd of employees and the enormous number of customers they have attracted, it becomes hard for supervisors to attend to clients and workers without experiencing inconveniences. Since their legacy dated system doesn’t accommodate their needs and expanding it seems to be quite expensive, they should install a configured system with a platform that meets their specific business needs and automates workflows. Furthermore, to attract more customers, they can install high-quality aircraft interior products to take their airplanes to the next level. Improving customer service and passenger follow up is always a considerable offer to curb risks.