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by importing investment goods used for capital deepening

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How can a deficit actually increase the productivity of the economy?

by importing investment goods used for capital deepening


How can a trade deficit actually increase of productivity of an economy?

by importing investment goods used for capital deepening


How can trade deficit annually increase the productivity of an economy?

by importing investment goods used for capital deepening


How does technology affect productivity in an economy?

Usually, new technology will increase productivity in the economy. For example, if you replace a human in a factory with a robot that can work twice as quickly without breaks, productivity would increase.


What are the advantages of a current account deficit?

A current account deficit can indicate a growing and healthy economy as in the short term it increases productivity and therefore increases exports in the future.


Why is productivity essential for economic growth and development?

Productivity is the baseline of an economy..Increase in Productivity means increase in .GDP.and increase in GDP means increase in the growth of economy..But growth should be balance and based on equity. So,.if productivity rises ,major section of population get food ,who sustain their life in rural areas. Productivity also generate employment opportunities , that makes rise in standard of living. It creates investment opportunities. This way we achieve better performance in development of a country and in HDI.. .


Explain how Smith's ideas are evident in the workings of the us economy?

All of Smith's ideas contributed in the American economy which lead to the increase of the productivity and output.


A government prints and distributes posters to inspire workers to increase their productivity In which kind of economy does this most likely take place?

Centrally Planned Economy


What statements is a fundamental part of Keynesian economics?

The government can use deficit spending to increase aggregate demand and pull the economy out of recession.


Which of these statements is fundamental part of keynesian economics?

The government can use deficit spending to increase aggregate demand and pull the economy out of recession.


How does deficit spending impact national debt?

Deficit spending is spending money raised by borrowing. It is used by governments to stimulate their economy during times of depression or economic slow-down. Unless the borrowing is repaid, deficit spending will increase the national debt.


How are Adam smith's ideas evident in our economy today?

all of Smith's ideas contributed in the American economy which lead to the increase of the productivity and output, it also increased the competitions in the market.

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