Question

Describe the role of government in an economy.​

Answer 1

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In order to ensure and support economic freedom as well as political freedom, the founders of our

nation envisioned a very limited role for the government in economic affairs. In a market economy,

such as the one established by our Constitution, most economic decisions are made by individual

buyers and sellers, not by the government.

Answer 2

Answer:

Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy. ... Over time, as our society and economy have changed, government activities within each of these functions have expanded.