What types of government policies can increase long-run living standards?
What will be an ideal response?
If, for some reason, the national saving rate were too low, the government could increase national saving by reducing its budget deficit. Government policies could also raise the level of productivity and/or the rate of productivity growth by improving infrastructure, building human capital, and encouraging research and development.
You might also like to view...
One would speak of a change in the quantity of a good supplied, rather than a change in supply, if
A) the price of the good changes. B) the cost of producing the good changes. C) prices of substitutes in production change. D) supplier expectations about future prices change.
Managers of profit centers earn more when their divisions
a. increase their sales and decrease their costs a. decrease their sales and increase their costs b. increase the costs of the components for which they are responsible c. none