Question

Discuss the role of government in promoting economic development.

Answer 1

In modern times, State participation in economic activity can hardly be a matter of disagreement.

The free play of economic forces, even in highly developed capitalist countries, has often meant large unemployment and instability of the economic system.

In the advanced countries, State intervention has been invoked to ensure economic stability and full employment of resources. State action is all the more inevitable in under-developed economies which are struggling hard to get rid of poverty and to attain higher living standards.

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