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Name some major aspects and sectors of the U. S. economy affected by regulations.

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  1. 18 May, 12:58
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    The aspects and sectors of the U. S economy affected by regulations are;

    • Allocative efficiency across sectors of economy

    • Competition within industries

    • Cost vs benefit in promoting public interests and goods

    • Macroeconomic and employment sectors

    Explanation

    Regulations affect the manner national resources such as labor and capital are utilized in the production of goods and services. These regulations check whether the inputs are distributed to their desired uses. The regulation set the environment for new businesses to form and for the existing successful ones to grow and thrive. Regulations have an effect on both short term and long term economic growth in terms of employment during a recession period and in investment and innovation.
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