AP Macroeconomics / Unit 5: Long-Run Consequences of Stabilization Policies
5.7 Public Policy and Economic Growth
Notes
Policies that promote growth: investment in infrastructure, education, research, property rights, and incentives to save and invest.
- Supply-side policies aim to increase LRAS.
Practice
Which is a supply-side policy?
Encourages production.
Public spending on roads and broadband supports growth by:
Infrastructure.
Strong property rights help growth because:
Incentives.
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