How government decisions affect the economy? - Synthesis

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The government can affect the economy by using its weapons like Monetary Policy, regulating trade, and creating rules and regulations. The government plays a major role in the state of our economy. An article from a well-known business site, Investopedia, discusses that the government can use Monetary Policy to give the economy a boost or keep it in check. Once they use this, the economy will suffer from inflation as it increases the value of the dollar. Once this occurs the economy before us shoots down. As bad as this may sound, it could be beneficial in the cases of which the government ensures it stays at a steady pace to avoid too quick of progression. That’s not all, the government also regulates trade. An article argues that they regulate trade for multiple reasons. They do this to ensure the safety of people, but it also affects the economy. Once we receive goods from foreign areas, the government overlooks it so nothing is being harmed to its people. If the government contains lots of exports without returning, the overall value of everything will decrease as the entire country would stand in debt. The government has another major weapon in its arsenal, accompanying Monetary Policy and trade. It has the power to make rules. An article argues that the government has a weapon to create laws for businesses. If they use this ability, they can regulate what the business sells or even who they appeal to. They do this with the intention of being noble and setting equality, but in doing so, they affect the economy as everyone has to sell to everyone. With these 3 tools, the government can literally craft the economy as it just sits at their fingertips.