Someone who is retiring has more experience on what to invest in than someone who is still getting used to knowing what to invest in
D) a Japanese stores selling tea and spices from South Asia
It is/was at war, it doesn't have the kind of financial sustenance you need.
Assume that a change in government policy results in greater production of both consumer goods and investment goods. We can conclude that the economy was not employing all of its resources before the policy change.
Explanation:
Policies by government will affect economic growth
Government policies have a major role to play in encouraging (or deterring) economic growth. Economic policies that lead to economic growth include:
Investing in infrastructure:
Infrastructure, such as highways or bridges, is tangible capital available to all. Governments are increasing their capital stock in the country by investing in infrastructure.
Productivity and labor participation strategies :
Promoting a higher rate of labor participation, for example labor participation tax incentives, will lead to even more economic growth.
Policies promoting accumulation of capital and technological advancement:
Savings-enhancing strategies that lead to higher growth and thus capital investments. Strategies that encourage technological innovation, such as research and development tax credits, often lead to increased economic growth.
Answer:
At least during the last couple of decades, service firms tend to generate sustained growth while manufacturing firms do not.
Explanation:
The last president that recorded a steady manufacturing growth rate was Bill Clinton.
Service firms are growing steadily and probably will continue to do it. While manufacturing firms have been slowing down, their growth rate (if any) is not very large during the past few years and that tendency has increased with the new trade barriers imposed by our government during the last couple of years.
Another thing that helps the growth of service firms is that when manufacturing firms or agricultural firms grow, they need more services, so service firms will grow even more.
