Role of Business in the Society The main role of business in the society is to produce both goods and services in order to meet demand created by the public. However, it must do so in such a way that companies also make profits so that they can continue to exist. Businesses provide goods and services that both the public and governments cannot do without having. In addition to this, businesses also consume both products and services from both the government and the public such as labour. Therefore, it is also the responsibility of any business to give back to society. This way the company will gain acceptability in society. Business has the moral obligation to the consumers and the public not to produce goods and services that have the potential to cause any harm to people. In addition, it is the responsibility of business not to unreasonably over charge the consumers for its goods and services. Recently it is has become the responsibility of business to contribute to the wellbeing of the society in which it carries out its business in the sense that a better society means a better environment for doing business. In fact, a business social dimension is a plus in the conduct of business. It makes the very people who buy services and goods the mere existence of that business. This makes them to want to buy their products, which creates customer loyalty. Business also has the obligation to trade fairly with other businesses and its suppliers to ensure an optimal business environment and to meet its financial obligations accordingly. It also has the responsibility to obey the laws of the country/state in which it is carrying out its business. Roles of For-Profit and Nonprofit Organizations in the Economy Profit and nonprofit organizations contribute to the growth of an economy. They both offer employment and contribute to the GDP. In 2011, for example, nonprofit organizations contributed about 5 % of the United States’ GDP. These organizations also offer employment to youth and create a sense of purpose in society by championing for certain causes. For profit organizations, on the other hand, exist purely for profit making purposes. They pay tax and contribute to the economic development by employing individuals who in turn pay tax and use their disposable incomes to spur growth in various sectors of the economy. Additionally, profit organizations engage in social responsibility work. This ensures that they maintain close contact with the business market and shows a sense of responsibility towards their sources of resources. Impact of Current Fiscal and Monetary Policy on the Economy The government uses two policies to control money supply in a country. That is, expansionary and contractionary policy with the effect of increasing and reducing money supply respectively. The effect of expansionary policy on the AA-DD model is a shift to the right. This increases the exchange rate of a country’s money with respect to another country. However, this does not happen fast. It takes on a transitional mode with many factors at play. For example, the real money supply exceeds the real money demand. This, in the short run, means that inflation levels increase quickly. However, the trend lags as more people convert their money assets into non-money assets to beat or take advantage of the inflation level