Question

Using the language of Economic Goals from class, describe a change you'd make to the way our local or federal government interacts with the economy. The goal of this change should be to maximize the "utils" toward as many goals as possible, while sacrificing as little as possible. Justify your answer in terms of goals. Your answer should be a paragraph.

Answer 1

The federal or local government aims at achieving goals by changing the ‘utils’, which means maximizing utility and sacrificing as little as possible. The local government follows some policies that focus to increasing the utility of healthy economy that benefits the citizens. The policies and planning by the government for improving one segment or sector of the society will leads to sacrifice of another segment. The government also made the decisions about the international policy which directly affects the domestic market. This is also used as foreign tool to increase foreign reserves.  
The interest rates rise for controlling inflation which will have negative impact on other segment and may also lead to rise in unemployment rate. Therefore, the government maintains the balance between the segments and sectors. The full employment is impossible in any economy by any government. Because sometimes people leaves their jobs or may be unable to work which reduce employment. There are major three policy goals: stable prices, full employment, economic growth. The local government has also other objectives to maintain sound economic policy like fiscal policy which refers to the tax policy by the government. And people have more money and the purchasing power rises. The government also focuses on increases production by the factories to meet the demand and also increase the employment.