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What will happen if the government does not what are some advantages of government intervention in the advantages of government intervention in the economy. The government intervenes in the macro economy in various ways including demand and supply side policies macro economics objectives of the government include. Free market system and government intervention essay in a free market system, resources that are scarce are allocated through what is termed as price mechanism. One of the main issues in economics is the extent to which the government should intervene in the economy free market economists argue that government intervention.