What are some fiscal policies that might encourage economic growth ? Please answer this question carefully! What are some fiscal policies that might improve a society's human capital? Please answer this question carefully! How would you expect larger budget deficits to affect a private sector investment in physical capital? Why? Please answer this question carefully!
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- Policymakers trying to promote economic growth must confront the issue of what kinds of capital the economy needs most. If policymakers decide to rely on the marketplace to allocate the pool of saving to alternative types of investment, Those industries with the kinds of capital that yield the lowest marginal product will borrow the most. Those industries with the kinds of capital that yield the highest marginal product will borrow the least. All industries will have incentives to borrow more. Those industries with the kinds of capital that yield the highest marginal product will borrow the most.Explain how the government can use fiscal policy for capital formation in the process of economic development. Thanks.What is the potential impact of rapid economic growth on: a) A nation's tax base? b) GDP/Capita?
- Many economists think that long-run economic growth is important for the welfare of a nation. Classify the statements below regarding long-run economic growth as true or false. No explanation is needed just whether or not is is true or false - An economy that has experienced long-run economic growth has avoided painful recessions - There has been more long-run economic growth in the last 100 years than occurred between the years 1000 and 1700 - Long-run economic growth is often a direct result of expansionary monetary policy - A nation with a shrinking population cannot experience long-run economic growth - Long-run economic growth can be measured with per capita GDP - Long-run economic growth is often a result of increases in productivityBelize Prime Minister took $30 million loan from the Social Security Board, for constructing of administrative buildings on government-owned land on Lake Independence Boulevard. Can this level of expenditure contribute to the economic growth of Belize or helped lower poverty among the population?Please explain the effect of public expenditure on economic growth?
- In 2010 the Greek government had to inform the European Commission on how it would control its budget deficit and improve the performance of its economy. The government’s debt is so high that agencies assessing the creditworthiness of the government downgraded it (which would mean more interest has to be paid to raise finance). Proposals were likely to include a 10% cut in government spending. What actions can the government take to increase national income growth in Greece?Explain the following as effects of low policy rates to the growth of an economy: 1. It can cause inflationary pressure 2. It might lead to a boost in economic growth 3. Investments are more desirable 4. There will be relatively low borrowing cost for government.Identify 4 public policies that can stimulate employment and facilitate economic growth in an economy.
- In 2010 the Greek government had to inform the European Commission on how it would control its budget deficit and improve the performance of its economy. The government’s debt is so high that agencies assessing the creditworthiness of the government downgraded it (which would mean more interest has to be paid to raise finance). Proposals were likely to include a 10% cut in government spending. Questions What actions can the government take to increase national income growth in Greece? If the Greek economy is in recession what would you expect to be the effect on: a) Inflation? b) Unemployment? c) Imports? Explain your answers.you are appointed by a congressional task force to recommend at least two economic policies that will result in long-term growth. What do you recommend, and why?Suppose the United States moved from the current pay-as-you-go Social Security system to a fully funded one and financed the transition without additional government borrowing. How would the shift to a fully funded system affect the level and the rate of growth of output per worker in the long run? This will the saving rate. In the long run, it will lead to a level of output per worker and the growth rate of output per worker. A. increase; higher; have no effect on B. decrease; higher; have no effect on C. increase; higher; increase ○ D. decrease; lower; decrease