Unformatted text preview: can try to raise the growth in living standards in a society. Are there any drawbacks to these policies? CONCLUSION: THE IMPORTANCE OF LONG-RUN GROWTH In this chapter we have discussed what determines the standard of living in a nation and how policymakers can endeavor to raise the standard of living through policies that promote economic growth. Most of this chapter is summarized in one of the Ten Principles of Economics: A countrys standard of living depends on its ability to produce goods and services. Policymakers who want to encourage growth in standards of living must aim to increase their nations productive ability by encouraging rapid accumulation of the factors of production and ensuring that these factors are employed as effectively as possible....
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- Spring '10
- Economics, Average Growth Rate