How_Can_Government_Promote_Economic_Growth

HOW CAN GOVERNMENT PROMOTE ECONOMIC GROWTH' 1. Provide an environment that makes economic growth as easy as possible for business, low legal hurdles to opening a business, ease of hiring and firing employees, strong and impartial civil courts, etc. 2: Lower interest rates: this will reduce the cost of borrowing funds and firms will be encouraged to invest for instance, in building and machinery (capital goods) which can help an economy grow and prosper. 3: The government can provide funds to help firms invest in new research and development of better products and production methods. 4: Reduction in taxes: lower tax rates can motivate workers to work hard and achieve higher levels of productivity environment that makes economic growth as easy as possible for business, low legal hurdles to opening a business, ease of hiring and firing employees, strong and impartial civil courts, etc. 2: Lower interest rates: this will reduce the cost of borrowing funds and firms will be encouraged to invest for instance, in building and machinery (capital goods) which can help an economy grow and prosper. 3: The government can provide funds to help firms invest in new research and development of better products and production methods. . In this way there will be a higher output of goods and services produced in the economy. 5: Trade barriers: this will protect business from foreign competitions for instance by placing quotas, tariffs etc. In this way, the imported goods will appear to be more expensive, therefore an increase in sales of goods and services produced within the country. In this way the output will increase and unemployment will fall.