Hey there! Sign in to join this conversationNew here? Join for free
    • Thread Starter
    Offline

    0
    ReputationRep:
    What are the cures for zero or negative economic growth?
    Offline

    14
    ReputationRep:
    (Original post by Me14)
    What are the cures for zero or negative economic growth?
    Fiscal policy can be used to reduce PAYE & VAT to enable firms to be able to expand and employ more workers.
    This will mean that less people are unemployed and they have more disposable income to buy goods and services, which should mean there's an increase in aggregate demand.

    Another benefit of using fiscal policy to stimulate employment is that more people will be paying tax revenue rather that being a cost to the government through claiming benefits. The government can use this increase in revenue to invest in things such as infrastructure projects which will create direct employment for engineers and builders --> Multiplier effect
    Offline

    2
    ReputationRep:
    (Original post by Me14)
    What are the cures for zero or negative economic growth?

    What was said in the post above but don't forget monetary (demand side like fiscal) and supply side policies (for long term growth)!
 
 
 
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • Poll
    Would you like to hibernate through the winter months?
  • See more of what you like on The Student Room

    You can personalise what you see on TSR. Tell us a little about yourself to get started.

  • The Student Room, Get Revising and Marked by Teachers are trading names of The Student Room Group Ltd.

    Register Number: 04666380 (England and Wales), VAT No. 806 8067 22 Registered Office: International House, Queens Road, Brighton, BN1 3XE

    Quick reply
    Reputation gems: You get these gems as you gain rep from other members for making good contributions and giving helpful advice.