Activities of the government on the economy
While consumers and producers obviously make most decisions that mold the economy, government activities have at least four powerful effects on the U.S. economy:
Direct Services. Each level of government provides direct services. ...
Regulation and Control. ...
Stabilization and Growth. ...
Direct assistance.
Monetory policy
Fiscal policy
National debt...
These are ways government control inflation and unemployment...
Also
Macroeconomics and Microeconomics
In the preceding discussion, we’ve touched on two main areas in the field of economics: (1)
macroeconomics , or the study of the economy as a whole, and (2) microeconomics , or the study of the economic choices made by individual consumers or businesses. Macroeconomics examines the economy-wide effect of inflation, while microeconomics considers such decisions as the price you’re willing to pay to go to college. Macroeconomics investigates overall trends in imports and exports, while microeconomics explains the price that teenagers are willing to pay for concert tickets. Though they are often regarded as separate branches of economics, we can gain a richer understanding of the economy by studying issues from both perspectives. As we’ve seen in this chapter, for instance, you can better understand the overall level of activity in an economy (a macro issue) through an understanding of supply and demand (a micro issue).