If a country that has experienced political instability (coups, revolutions, etc.), begins to experience a stable period of elections and peaceful transitions of government, it will impact its economy by

Question

Quizplus · Accepted Answer

The stability in politics and the peaceful transition of government will lead to an increase in both aggregate demand and aggregate supply. This is because it will promote investment and business confidence, which will lead to increased productivity and economic growth. Furthermore, stable political conditions will attract foreign investors, leading to increased capital inflows and ultimately the growth of the country's economy.

If a Country That Has Experienced Political Instability (Coups, Revolutions