How government promotes growth
Supply-side fiscal policies
1. Infrastructure spending
2. Education and training spending
3. Tax incentives for investment
4. Research and development subsidies
Supply-side effects on AD-AS
Supply-side growth: LRAS and SRAS shift right → higher output, lower price level
The trade-off: present vs. future consumption
Producing more capital goods today → faster PPC growth
Institutional factors that support growth
Policies that hinder growth
Growth policy debate
AP Exam Tips
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Common Mistakes
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