Answer:
Tht government affects the economy by:
- Adjusting spending and tax rates (known as fiscal policy)
- Managing the money supply and controlling the use of credit (known as monetary policy)
- Slowing down or speed up the economy's rate of growth
- Managing subsidies
- Regulatingt the level of prices and employment.
The protection of markets with excess labor refers to the erection of barriers to imports of products competing with local offerings in an effort to protect local jobs. This is found in the <u>"Arguments for Protectionism"</u> section.
<u>Explanation</u>:
Arguments for Protectionism were made to protect the national security value of the trade. The arguments for protectionism section comprise many protection measures. They are as follows:
i) Protection on markets with excess productive capacity
ii) Employment protection and protection of markets with excess labor
iii) Protection of consumers
iv) Infant industry arguments
v) National defense interests
Excess productive capacity in the markets can help in invoking the protection of local labor and preventing purchase from foreign countries.
