Public policy significantly influences economic growth by establishing the framework for a nation's economic activities. Effective policies can encourage investment, stimulate innovation, and create jobs, thus driving overall economic performance. For example, policies that promote education and workforce development enhance human capital, leading to improved productivity. Conversely, restrictive policies can stifle growth by inhibiting trade or innovation. Ultimately, public policy is a critical tool government uses to shape the economic environment, impacting everything from taxation to environmental regulations.