Terms and concepts

Government activity and policies have a direct impact on long-run growth. It can invest, and operate through monetary and fiscal policy

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  Investment: the government can stimulate economic growth by investing in the economy. Examples of stimulants include investing in market production, infrastructure, education, and preventative health care.
  
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  Monetary policy: the government enacts monetary policies to keep the growth rate of money steady.
  
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  Fiscal Policy: Choices in tax structure, government spending, and economic regulation can all impact long-run growth by affecting the choices that businesses and individuals make.
  

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