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You have just been appointed to a special Presidential Task Force on Economic Growth. You are...

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Economics

You have just been appointed to a special Presidential TaskForce on Economic Growth. You are responsible for proposing threepolicies that the government can enact to increase the growth rate.What policies would you recommend and why?

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4.5 Ratings (750 Votes)
Policies to improve economic growth are focused to increase aggregate demand Demandside to increase aggregate supply Supplyside We will focus on current global scenario of decline in demand ie demand side policies Fiscal Policy The government can boost demand by cutting tax and increasing government spending Lower income tax will increase disposable income and encourage consumer spending Higher government spending will create jobs and provide an economic stimulus    See Answer
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