Question

Which of the following is NOT a possible government activity that can assist in economic issues that could influence long-run growth?

Group of answer choices

Controlling excess inflation.

Allowing excess short-term growth.

Investing in infrastructure.

Regulating business activities.

Answer 1

Here is the answer

Conntrolling excess inflation

Allowing excess short-term growth

Explanation :- When an economy experiances imbalanced in economic growth, the government can respond in order to assist in securing the market by three methods.

1. INVESTING:- The government can stimulate economic growth by investing in the economy. Examples, investing in market production, infrastructure , education, and preventative health care. This is especially important when excessive growth occur. The government must stimulate economic growth to meet the needs of an increasing population.

2. MONETARY POLICY:- The government enacts monetary policies to keep the growth rate of money steady. This helps to control excess inflation and short term growth, both of which can negatively affect long run growth.

3. FISCAL POLICY:- Choicesin tax structure , government spending and economic regulation can al impact long run growthby affecting the choices that bussiness and individuals make.

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