Which is an example of the economic function of government?
Which is an example of the economic function of government?
Stabilizing the Economy Example: Use government budgets and/or the money supply to promote economic growth, control inflation, and reduce unemployment. 3. Have students categorize some of their activities listed in Step 1 as examples of the economic functions of government.
How did the government control the American economy?
Regulation and Control in the U.S. Economy. At times, the government has extended economic control to other kinds of industries as well. In the years following the Great Depression, it devised a complex system to stabilize prices for agricultural goods, which tend to fluctuate wildly in response to rapidly changing supply and demand.
How does the federal government use fiscal policy?
One way the government uses fiscal policy is to stimulate the economy if it ascertains that business activity is lagging – and spends more to stir up the economy (called “stimulus” spending).
How does the Federal Reserve System affect the economy?
The central bank of the United States, the Federal Reserve System (often called the Fed), has the sole power to regulate the money supply, and it operates independently of the President and Congress, focusing on economic rather than political concerns. When more money is in circulation, the economy tends to grow.
Stabilizing the Economy Example: Use government budgets and/or the money supply to promote economic growth, control inflation, and reduce unemployment. 3. Have students categorize some of their activities listed in Step 1 as examples of the economic functions of government.
Regulation and Control in the U.S. Economy. At times, the government has extended economic control to other kinds of industries as well. In the years following the Great Depression, it devised a complex system to stabilize prices for agricultural goods, which tend to fluctuate wildly in response to rapidly changing supply and demand.
Which is an example of a command economy?
The government is in control of a command economy. Mixed economies have elements of both. Most economies in the world today are mixed, though some are command. An example of a command economy would be communist North Korea. The North Korean government owns and controls all property,…
Who is in control in a free market economy?
The determining factor comes down to who owns and controls property and the factors of production. In a free-market economy, private individuals or groups are in control. The government is in control of a command economy.