Step-by-step explanation:
Understanding how policies impact the economy is important for several reasons. Firstly, policies that affect the economy can have significant consequences for people's livelihoods, their purchasing power, and the overall health of the economy. A deep understanding of how policies work can help policymakers make informed decisions that promote economic growth and stability, and minimize negative impacts. Secondly, understanding how policies impact the economy can help individuals and businesses make informed decisions about their investments, job choices, and spending. Lastly, understanding the relationship between policies and the economy can help people better understand the economic landscape and participate more fully in economic discussions and debates.