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What is the affect of the government when the economy is in decline?
Wiki User
∙ 13y ago
Well, the affect of the government in these circumstances is usually to deny the data and demonize their critics.
But the effect of the government is to reduce GDP and indeed all economic activity, [for GDP is a poor measure of activity].
Govt taxes decrease and in countries where the unemployed are entitled to a benefit, the Govt expenditure increases.
An alternate scenario to paying unemployment is to create work for the unemployed, rather than rely on the 'invisible hand" of marketplace economics.
Which like most invisible things, has no existence.
Wiki User
∙ 13y ago
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What is the effect on the government when the economy is in decline?
prices rise
How does the government regulation affects the economy?
It would have been more apt, if it is reworded as How does the government regulation affect market economy. In a controlled economy, government decides what its economy should be and hence has no relevance.In a market economy, the fundamental aspect of Choice and freedom... This enables production as per market demand and also creation of new markets for products. Government regulations affect the choice and freedom and hence may affect the market dynamics and economy.
How does the government fiscal policy affect the economy?
When inflation increase
How did a decade of Republican government affect the economy?
A decade of republican government put the economy in debt. During Reagan's time the money was spend on defense spending.
What refers to the use of taxation and government expenditures to affect the economy?
Fiscal policy
What is the effect on the government when the economy is in decline?
prices rise
How does the government regulation affects the economy?
It would have been more apt, if it is reworded as How does the government regulation affect market economy. In a controlled economy, government decides what its economy should be and hence has no relevance.In a market economy, the fundamental aspect of Choice and freedom... This enables production as per market demand and also creation of new markets for products. Government regulations affect the choice and freedom and hence may affect the market dynamics and economy.
How did the new deal affect the government?
It made the economy bad
How does the government fiscal policy affect the economy?
When inflation increase
How did a decade of Republican government affect the economy?
A decade of republican government put the economy in debt. During Reagan's time the money was spend on defense spending.
What refers to the use of taxation and government expenditures to affect the economy?
Fiscal policy
What is a contracting economy?
A contracting economy is one that is on the decline. The opposite of a contracting economy is a growing economy.
How do tornadoes affect the economy?
well the economy gets money....so its good for them because the government pays them for the damages a tornado does.
How do government policies affect free market economies such as the U.S economy?
okay i nose
How did the decline of the Soviet Union affect USSR?
The economy was starting to get worse, drugs and stds were becoming common, gorbachevs reforms really were the biggest factor.
How will the current economy affect the sports and entertainment industry?
No one will come to games,shows,etc. and no money will be made to support them so it will decline greatly.
Is there a decline in education job openings based on the present economy?
There actually is a decline in education jobs because a lot of smaller schools are being closed down, and combined with other schools to save the government money.
