To increase growth, governments should do all of the following except ?
Correct answer: C. nationalize major industries
- A. encourage foreigners to investment in your country
- B. encourage saving and investment
- C. nationalize major industries
- D. encourage research and development
- E. Promote free trade
Explanation
Nationalizing major industries can weaken competition, incentives and efficiency, so it is not generally a recommended growth policy. Saving, investment, foreign investment, research and development, and free trade can all support long-run growth.
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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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