Respuesta :
Answer:
Explanation:
Government policies to increase economic growth are focused on trying to increase aggregate demand (demand side policies) or increase aggregate supply/productivity (supply side policies)
Demand side policies include:
Fiscal policy (cutting taxes/increasing government spending)
Monetary policy (cutting interest rates)
Supply side policies include:
Privatisation, deregulation, tax cuts, free trade agreements (free market supply side policies)
Improved education and training, improved infrastructure. (interventionist supply side policies)
Demand-side policies but also policies to boost aggregate supply or productivity seem to be the main goals of government initiatives to spur economic growth.
What are policies?
A purposeful set of rules designed to direct behavior and produce logical results is called a policy. A policy is a declaration of intent that is carried out through a method or protocol.
What is economic growth?
Economic growth is the rise or development in the market value of the goods as well as services generated by such an economy over a predetermined period of time, taking inflation into account.
Demand-side policies but also policies to boost aggregate supply or productivity seem to be the main goals of government initiatives to spur economic growth.
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