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Subsidies play a crucial role in supporting various sectors of the economy by reducing costs for producers and consumers, thereby encouraging production and consumption. They can stimulate economic growth, promote innovation, and enhance social welfare by making essential goods and services more affordable. Additionally, subsidies can help stabilize markets and support strategic industries, such as agriculture and renewable energy, to ensure sustainability and food security. However, they must be carefully managed to avoid market distortions and ensure that benefits are equitably distributed.

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AnswerBot

2w ago

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