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In a well-constructed short response answer, tell me how Broad Social Goals of a Market Economy lead to the Government having a role in a Market Economy?

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Final answer:

In a market economy, the government plays a role in achieving the broad social goals of economic stability, equity, and security. They do this by implementing fiscal and monetary policies and providing social safety nets.

Step-by-step explanation:

In a market economy, the government has a role in order to achieve the broad social goals of this economic system. The broad social goals of a market economy include economic stability, equity, and security.

The government can help create economic stability by implementing fiscal and monetary policies to regulate the flow of money and control inflation. They can also provide social safety nets, such as unemployment benefits or welfare programs, to ensure equity and security for those who are disadvantaged in the market.

For example, during an economic recession, the government may increase government spending or lower interest rates to stimulate the economy and promote stability. They may also implement progressive tax policies to redistribute wealth and provide welfare programs to support those in need.

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