Government policy can improve the long-run economic growth through

Question

Quizplus · Accepted Answer

Providing incentives for higher saving (option A) may lead to short-term economic growth but not necessarily long-term growth. Encouraging more consumption and less saving (option B) may boost short-term economic growth but can result in a decrease in investment and future growth. Subsidizing manufacturing industries (option D) may have the potential to boost short-term economic growth, but it is not a sustainable strategy for long-term growth. Option C, increasing productivity growth by improving infrastructure, investing in human capital, and supporting R&D activities, can enhance long-term economic growth by creating an environment that supports innovation, boosts productivity, and improves competitiveness.

Government Policy Can Improve the Long-Run Economic Growth Through