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A major burden to the growth of China's economy was cause by the high population growth. An increase in the population has resulted into limited resources among the residents.

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What fiscal policy action would cause the economy to contract?

Policies that raise taxes tend to contract the economy. In addition, policies that cause the government to do less spending contract the economy.


Disadvantage of market economy?

One of the key disadvantages of a market economy is that it is unpredictable. Many events can cause shocks in a market economy. For instance, a natural disaster or war can cause volatility in the market. A lack of stability is the key feature of the market economy.


Is inflation harmful?

Too much inflation will ruin the economy but small levels of inflation will spur growth. Inflation is very harmful to any economy because it can ruin the economy's development and growth and this is not suppose to be. Inflation is also very harmful to any economy because the people living in that economy might not survive the situation and this is when you see that an economy is affected and if nothing is done to it, it can cause an economy to collapse.


What are the factors affecting economic growth in the UK?

Economic growth is measured by an increase in the real Gross National Product of a country or its GDP. There are two types of economic growth, long run and short run economic growth. Short run economic growth is caused by an increase in the aggregate demand of an economy, otherwise referred to as AD. AD is made up of four factors, consumption, investment, government spending and the net worth of imports and exports. An increase in any of these factors can lead to an increase in real GDP. Long run economic growth is caused by an increase in the quality or quantity of the factors of production of the economy. These FOP's are land, labour, capital and enterprise. An increase in any of these factors will cause an increase in the potential output of an economy meaning it has the potential to produce more.


Is the economy is high or low in Romania and what causes?

The Romanian economy is in decline; the cause is the destruction in order of EU.

Related Questions

Is inadequate economic growth a cause of unemployment?

Where economic growth in an economy slows down, it's never a good thing. The employable population in any economy needs to have jobs available in the economy. Growth will do this, however, slow growth will not keep up with the number of people seeking jobs, thus creating unemployment.


In the US what is likely to cause virtually all population growth in the next couple of decades?

Birthrate and economy.


When is the legal burden of proof on the accused?

Under US law: There is NO burden on the accused defendant to prove anything. The entire burden of proof lies with the prosecution.


Why did the french come to Canada?

they came to Canada 'cause the economy was better


Gibberellins cause plant growth by stimulating?

Gibberllins cause plant growth by stimulating cell division. It causes growth in the stems and leaves.


What fiscal policy action would cause the economy to contract?

Policies that raise taxes tend to contract the economy. In addition, policies that cause the government to do less spending contract the economy.


Why is controlling the rate of the growth of money is the most important job of the FED?

The rate of growth of money is based on the monetarist's economics - Milton Friedman and other neo-classicists. They argue that the growth of money which is not sustained by an equal growth in the aggregate supply will cause inflation in the economy. Similarly, a tightening monetary policy will make less money available to spend on goods and services.


Did burden of proof on the issue of causation rests on the prosecution?

No. The prosecution only has to prove that you COMMITTED the offense. The issue of WHY (the cause) you did it is not a prosecutorial responsibility.


Does herpes stunt your growth?

No, it is unlikely to be the cause of stunting growth


Does the economy cause wars?

Sometimes, but most of the time it's the wars that effect the economy.


Does the intake of vitamin D cause breast growth?

No, consuming Vitamin D does not cause breast growth or enlargement.


Why is productivity related to the economy?

cause it just is