BU204: Macroeconomics

Economics
Tutor: None Selected Time limit: 1 Day

Governments have impacts on the economic growth through the control of assets of production. What do you think is the impact of the government intervention on the economic growth? 

Jul 21st, 2015

Thank you for the opportunity to help you with your question!

The impacts are as follows:

Macro-Economic Factors

Governments also intervene to minimize the damage caused by naturally occurring economic events. Recessions and inflation are part of the natural business cycle but can have a devastating effect on citizens. In these cases, governments intervene through subsidies and manipulation of the money supply to minimize the harsh impact of economic forces on its constituents.

Socio-Economic Factors

Governments may also intervene in markets to promote general economic fairness . Government often try, through taxation and welfare programs, to reallocate financial resources from the wealthy to those that are most in need. Other examples of market intervention for socio-economic reasons include employment laws to protect certain segments of the population and the regulation of the manufacture of certain products to ensure the health and well-being of consumers.

    • The government tries to combat market inequities through regulation, taxation, and subsidies.
    • Governments may also intervene in markets to promote general economic fairness.
    • Maximizing social welfare is one of the most common and best understood reasons for government intervention. Examples of this include breaking up monopolies and regulating negative externalities like pollution.
    • Governments may sometimes intervene in markets to promote other goals, such as national unity and advancement.


Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 21st, 2015

Can you please provide references?

Jul 21st, 2015

ok, these  are some of the references;

-An article titled " A new beginning welfare to work."

-www.boundless.com/economics

Jul 21st, 2015

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Jul 21st, 2015
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Jul 21st, 2015
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