Question

Respond to the following in a minimum of 250 words:

• Can government intervention in markets sometimes make the situation worse? Provide examples in your response. For example, consider the progress of the economy of Venezuela since 2000.

Answer 1

As we know that government intervens in the market to correct disequilibrium in the demand and supply. The government intervention is mainly by the way of fiscal and monetary policy. The government also intervens to control the inflation .

Kindly find the attached file for explanation.

Thanks ?.