The Government and the Economy

Document Type:Essay

Subject Area:History

Document 1

For instance, postal system is a federal system that serves the whole country. Also, the individual state governments play the role of constructing and maintaining most highways. The government may also pay for education systems (Harrison and Harris). Secondly, the government regulates and controls major private enterprises to ensure that businesses serve the best interests of the citizens. Also, the government exercises control as a way of protecting the public. Furthermore, healthy individuals may decide to reschedule their time between leisure and work. Though the introduction of the role of pollution in household and production may be challenging, the maybe considerable effects of the improvements in the quality of the environment on the general economy. While fiscal policy is implemented by the national government, monetary policy is normally implemented by the central bank.

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Monetary policy may have an effect on the volume of credit, money as well as their price interest rates (Harrison and Harris). Thus, monetary policy has an effect on output, employment and the overall level of prices. In case the government notices some form of overheating in the economy and there is the possibility of inflation, the government may respond by cutting on spending. This implies reducing the general demand in the economy leading to reduced production. Low production translates to reduced recruitments and investments. This more cases of unemployment and reduced chances of investing. Approaches to education have changed through the introduction of liberal education where the school aims at developing each student both socially and intellectually to the individual’s fullest potential.

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