Question

How does government regulates rhe functioning of an economy ????????

Answer 1

Explanation:

• The U.S. government uses two types of policies—monetary policy and fiscal policy—to influence economic performance. Both have the same purpose: to help the economy achieve growth, full employment, and price stability. Monetary policy is used to control the money supply and interest rates.

Answer 2

Answer:

Government can regulate private economic activity—for example, through minimum-wage laws. It can also provide goods and services that private businesses produce in insufficient quantities—for example, health care for the poor.

Maintain the Legal and Social Framework

Maintain Competition

Provide Public Goods and Services

Correct for Externalities

Stabilize the Economy

Redistribute Income