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Economists dealing with public finance both analyse actual policies and develop guidelines for government activities.
THE ECONOMIC FUNCTIONS OF GOVERNMENT
1)The allocation function: The responsibility of the government is to ensure that the resources of the society are used efficiently for the satisfaction of the wants of its members.
2)The distribution function of government :covers the activities involved in the redistribution of income. Distribution means the sharing of national income by individuals in a society.
3) The stabilization function of government: Stabilization means that aggregate demand and aggregate supply should be in equilibrium in order to ensure economic stability...
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