The federal government works to achieve three policy objectives in order to maintain a robust economy: stable pricing, full employment, and economic growth. The federal government has additional objectives to ensure sound economic policy in addition to these three policy goals.
Governments maintain competition, offer public goods and services, redistribute income, account for externalities, and stabilize the economy in addition to providing the legal and social framework. Governments affect the economy via altering tax rates and types, spending amounts and types, and borrowing amounts and types. Both directly and indirectly, governments have an impact on how resources are employed in the economy.
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