Government policies to promote long term economic growth might include: ______.

Social Studies

1 answer:

andreyandreev [35.5K]1 year ago

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Government policies to promote long term economic growth might include supply side policies.

Demand-side policies and policies to boost aggregate supply and productivity are the main goals of government initiatives to spur economic growth (supply side policies)

Demand-side measures consist of: Fiscal policy (reducing taxes/increasing spending on the government)

Fiscal policy (cutting interest rates) supply-side policies consists of: Privatization, deregulation, tax reductions, and free trade agreements (free market supply side policies)improved infrastructure, better education, and better training. (Intervening supply-side measures)In times of economic stagnation or recession, demand-side strategies are crucial.

Supply-side measures are important for enhancing long-term productivity development.

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