if the government wants to maintain the same growth trajectory what should they do?

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03-01-2021
Business

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if the government wants to maintain the same growth trajectory what should they do?

Sagot :

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Topeadeniran2idn Topeadeniran2idn · Answer 1 · 2021-01-03T20:20:10-05:00

Answer: Government should employ a neutral policy

Explanation:

It should be noted that applying a monetary policy is typically used to raise or lower the money supply in an economy and this will in turn affect the economic growth of such economy.

Also, using a contractionary or expensionary policy also either raises or lowers economic growth depending on what yeh government wants to achieve. Therefore, in order to maintain the same growth trajectory, the government should use a neutral policy.

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