WORLD HISTORY

Detailed explanation-1: -Government policies contain the reasons things that are to be done in a certain way and the reason for doing in that direction. Public problems can originate in endless ways, and they require different policy responses. Governments establish many policies that guide businesses.

Detailed explanation-2: -The four main types of public policy include regulatory policy, constituent policy, distributive policy, and redistributive policy. These four policy types differ in terms of what their goals are, and who they impact or benefit.

Detailed explanation-3: -The role of expectations in stabilization policy☆ The ‘credibility’ of a policy is defined to be the subjective probability that the government is pursuing a ‘reform’ policy rule. The ‘credibility’ of a reform of monetary or exchange rate policies is a function of the parameters of both monetary and fiscal policies.

Detailed explanation-4: -For example, a government may make a policy decision to raise taxes, in hopes of increasing overall tax revenue.