What is a policy that a government may implement to aid struggling sectors of the economy?

A subsidy is a policy that a government may implement to aid struggling sectors of the economy by providing financial assistance or support to businesses or industries that are facing economic difficulties. This financial aid can take the form of direct payments, tax reductions, or other incentives that lower costs for producers, thereby enabling them to survive challenging market conditions, maintain employment, and stabilize prices. By offering subsidies, the government can help stimulate growth in sectors that are vital for the economy but may be experiencing temporary setbacks, thus fostering economic recovery and stability.

In contrast, regulatory reform focuses on changing regulations that govern industries, which might not directly provide immediate financial support. Tax reform involves altering tax policies, which can impact the economy broadly but doesn't specifically target struggling sectors. Trade regulation deals with rules governing international trade, and while important, it is not a direct subsidy to any particular industry.