Government Involvement

Definition

The active participation of the government in managing or regulating economic activities within a country. It includes policies, regulations, and interventions used to influence economic growth, stabilize markets, and provide public goods and services.

Related terms

Regulation: Rules and guidelines set by the government to control various aspects of economic activities.

Fiscal Policy: The use of government spending and taxation to influence economic conditions.

Monetary Policy: Actions taken by a central bank (like the Federal Reserve) to manage interest rates, money supply, and credit conditions in an economy.