Clearly differentiate between economic conditions of public, economic policy and economic system

Economic Conditions

- Reference to the current state of an economy, such as its growth, inflation, unemployment, and other metrics.
- Influenced by factors like consumer spending, business investment, government policies, and external shocks.
- Can be described as recessionary, inflationary, stagnant, or booming.

Economic Policy

- Set of government actions and decisions aimed at influencing the economic conditions.
- Examples include fiscal policy (tax and spending changes) and monetary policy (control of interest rates).
- Seeks to achieve specific economic goals, such as stabilizing growth, reducing inflation, or creating jobs.

Economic System

- Framework that determines how resources are allocated and goods and services are distributed within a society.
- Major types include:
- Market economy: Primarily driven by market forces, with minimal government intervention.
- Command economy: Centralized planning and government control over economic decisions.
- Mixed economy: Blends elements of both market and command economies, with a balance of private and public ownership.

Key Differences

| Feature | Economic Conditions | Economic Policy | Economic System |
|---|---|---|---|
| Time Frame | Short-term | Medium-term | Long-term |
| Focus | Current state | Planned actions | Institutional structure |
| Scope | Macroeconomic | Macroeconomic | Microeconomic and macroeconomic |
| Flexibility | Can change rapidly | Somewhat flexible | Relatively rigid |
| Control | Driven by market forces | Controlled by government | Determined by institutions and policies |
| Goal | Describe current state | Influence economic outcomes | Establish economic rules |
| Example | High unemployment | Interest rate hike | Free market capitalism |