ECONOMICS
AGGREGATE DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An increase in aggregate demand leading to inflationary pressures
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A sustained increase in the value of the pound on the foreign exchange market
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A reduction in taxes which increases risk-taking and incentives to work
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A sustained reduction in both inflation and labour productivity.
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Detailed explanation-1: -As a result, a country cannot maintain its long-run growth by simply accumulating more capital or labor. Therefore, the driver of long-run growth has to be technological progress.
Detailed explanation-2: -Usually, the government policies that tend to raise economic growth include reducing the interest rate on loans intended for study. This is because a decline in the interest rate helps add more human capital in a nation that raises economic growth.
Detailed explanation-3: -Long-Term Growth Long-run growth is described as an economy’s ability to create more products and services over time. In addition to pricing and supply and demand, a country’s GDP is intimately linked to population growth.
Detailed explanation-4: -Which of the following is most likely to lead to higher economic growth? High levels of infrastructure development.