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If an economy were in collapse, the government would use policies to encourage an upswing by developing more money by buying government bonds. They would also lower interest rates to persuade people to spend more money.

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Q: How the government uses policies to encourage recovery and an upswing in the economy?
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The policy used by the government to encourage recovery and upswing in the economy?

This is the business cycle. Government steps in to ensure that businesses stay in an upswing so that the economy does not collapse.


Who is responsible for increasing population public or government?

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Policies that raise taxes tend to contract the economy. In addition, policies that cause the government to do less spending contract the economy.


How does the federal government use financial policies agencies and economic indicators to encourage economic growth and stablize the economy during times of recession inflation and depression?

In the simplest terms 2/3 of the economy is driven by consumer demand. Consumer demand is bouyed by consumer confidence. If the American people are confident in the government and the future they spend money which creates demand for consumer products and thus the economy grows. The government issues policies and reports on economic indicators to further boost the consumer confidence.


What makes the most economic decisions in a command economy?

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Government tries to encourage positive externalities and limit negative externalities..


What is government role in controlling externalities in the American economy?

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What is government's role in controlling externalizes in the American economy?

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