Question

Mention the three ways by which a government can promote economic development.

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Answer 1

Explanation:

1) It can invest in basic infrastructure such as power , transportation etc( cause the private sector doesnt usually nvestin the basic infrastructure as profits are low and it is very risky). It will encourage private companies to also invest after the basic infrastructure is set up.

2)The government can regulate the functioning of private sector through the process of "regulating through inducement " i.e fiscal policies, trade policies etc and check the defects in private sector and reduce the inequalities of wealth and income which promotes economic growth (This usually happens in mixed economy)

3)Maintains law and order as without law enforcement and order there can be no economic growth

Answer 2

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The government can promote economic development by:

1) By Giving a fiscal stimulus : If the government increases its public investment in capital goods, it will create a demand for goods and services and  hence increase the GDP of the country, or in other words promote the growth of the country. 

2) The government can bring about policies which increase exports and reduce the imports.

3)Governments undertaking to meet broad economic objectives such as price stability, high employment, and sustainable growth. Such efforts include monetary and fiscal policies, regulation of financial institutions, trade, and tax policies.

Hope it helps ❤️ !