Given the possible strategies listed below, design the best plan for increasing the country's future standard of living.
I. build new factories
Ii. print money
Iii. develop new production technology
Iv. sacrifice consumer goods for capital formation
Iv. tighten immigration policy
V. produce only enough capital goods to replenish depreciation.

Question

Quizplus · Accepted Answer

Building new factories will increase production capacity and create new job opportunities. Developing new production technology will increase efficiency and productivity, leading to higher output with the same or lower input. Sacrificing consumer goods for capital formation means diverting resources from current consumption to investment, allowing the country to have a larger capital stock in the future. Printing money will lead to inflation, which reduces the value of currency and erodes people's purchasing power. Tightening immigration policy may reduce labor supply, but it also limits the inflow of human capital and diversity, which can be beneficial to economic growth. Producing only enough capital goods to replenish depreciation means the country is not expanding its capital stock, which may lead to lower growth in the long run.

Given the Possible Strategies Listed Below, Design the Best Plan