Question

In: Economics

three ways to encorage productivity in your country to achieve GDP?

three ways to encorage productivity in your country to achieve GDP?

Solutions

Expert Solution

A government may attempt to influence the pace of economic growth through demand-side and supply-side policies, expansionary fiscal policies – lowering taxes to raise disposable income and promoting consumption.

Lower taxes, however, would increase the budget deficit and result in greater borrowing. The expansionary fiscal policy is ideally balanced in a recession when consumer spending falls.

Expansionary monetary policy (now usually laid down by independent central banks) – interest rate cuts will raise domestic demand.

Stability. A key government role is to provide economic and political stability that allows for the normal economic activity to take place. Political instability and conflict will deter investment and economic growth.

A nation that wants to increase its GDP per capita needs to come up with policies that are aligned with current global trends. Therefore, they will enforce the following Long-term planning-a nation must set realistic long-term targets to conform to including guidelines and expectations-including blueprints.
Industrialisation-all leading nations have grown as a result of rapid industrialisation. Recently, their enormous manufacturing sector has seen China and South Korea becoming strong economies.

Infrastructure-a country which wants to develop needs to improve connectivity for its people. This includes improving airports, marine ports, railroads, highways, industrial centers, electricity, pipelines and drainage.
In an ambitious country, education-training of people is crucial. It is important to bestow quality technical skills on the working population most through the use of trade schools. Basic education should a right for the younger generation. For higher education, it is best to balance university to trade school population ratio.

Family planning-a nation must ensure that birth-based population growth is acceptable for long-term purposes.
Immigration-it's best to diversify a population as it makes a country more responsive globally. Immigrants bring new talents and philosophies to help nations flourish.
Power-Defense and domestic security are important to economic development, as they reduce business costs. This requires regional political stability.


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