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Sample Essay on U.S Economy

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Sample Essay on U.S Economy

The role of the government in the United States economy is to promote and regulate competition. It does this by involving in international trade, implementing antitrust legislation to prevent creation of monopolies, and supporting start-ups of businesses. Additionally, the government has government agencies that control businesses in the economy. These agencies are charged with the responsibility of overseeing the manner in which companies and individuals do business.

Regulation comprise of the requirements that the government levies on private firms and individuals to attain the objective of the government. For instance, the government ensures that it protects private firms from unfair competition. On the other hand, deregulation refers to the process of eliminating the policies of the state. A good example is the Airline Deregulation Act. The government of the United States should continue to increase taxes in order to redistribute wealth to the poor. This is because other alters native ways like creating jobs for the poor may not benefit all of them for instance, the aged. Market demand refers to the sum of the demands of all probable clients for a specific commodity over specific period in a specific market. In simple terms, it is a combination of the demand of every buyer in the market.  For instance, at a cost of $2, customer 1 demands 3 units while customer 2 demands 2 units. Therefore, the market demand for product X is 3+2= 5 units. The cost of gas in the United States has remained so low in 2015 because of the reduction in international prices of crude oil. This is because the international supply is more than demand, which has made the prices of crude oil to remain low.

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