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If this definition sounds vague or confusing, it's likely because a public policy is generally not a tangible thing but rather is a term used to describe a collection of laws, mandates, or regulations established through a political process.
Policy is what the government chooses to do (actual) or not do (implied) about a particular issue or problem. Policy might take the form of law, or regulation, or the set of all the laws and regulations that govern a particular issue or problem.