how to increase the economy of the country??
Answers
Answer:)
There are two main aspects to economic growth:
Aggregate demand (AD) (consumer spending, investment levels, government spending, exports-imports)
Aggregate supply (AS) (Productive capacity, efficiency of economy, labour productivity)
To increase economic growth
We need to see:
1. Rise in aggregate demand
Aggregated demand can increase for various reasons.
Lower interest rates – reduce cost of borrowing and increase consumer spending and investment
Increased real wages – if nominal wages grow above inflation.
Higher global growth – leading to increased export spending.
Devaluation, making exports cheaper and imports more expensive, increasing domestic demand.
Rising wealth, e.g. rising house prices cause consumers to spend more (they can remortgage house
Explanation:
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