What are the cures for zero or negative economic growth?
Economic growth Watch
- Thread Starter
Last edited by Me14; 12-05-2013 at 18:03. Reason: Is it just to increase AD?
- 12-05-2013 18:01
- 12-05-2013 18:23
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 effectLast edited by CoolStoryBroo; 12-05-2013 at 18:24.
- 12-05-2013 19:35
What was said in the post above but don't forget monetary (demand side like fiscal) and supply side policies (for long term growth)!