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TopSpin asked in Social ScienceEconomics · 1 decade ago

Are economic growth policies long run or short run?

I'm not really sure, but my guess is both. I'm having trouble explaining why though.

5 Answers

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  • Anonymous
    1 decade ago
    Favorite Answer

    They can be either. Most effective ones look long term such as supply-side policies.

  • 1 decade ago

    They are long run.

    They are implemented in the short run, but have long term horizons.

    What confuses you is when the politician buys a new power plant perhaps: the effect is probably an immediate impact on your taxes and your power bill because sacrifices have to be made. What he placates you (and opposition parties) with is the ideal that this extra generating capacity is needed to achieve growth in the future, or at least not to stunt growth because of power failures. And it takes at least ten years to build one of those done so you've got to be thinking now.

  • ?
    Lv 4
    5 years ago

    Borrowing money to decrease taxes or elevating taxes to decrease borrowing has virtually no result on the nationwide cost mark downs cost if the human beings getting the tax decrease/will boost have severe sufficient earnings to fulfill the wanted intake already (the rich), The argument that tax cuts are sturdy whether they boost the deficit centers around incentives, it is they're going to attempt to earn extra and convey financial boost, The argument that tax will boost are sturdy midsection around government solvency and the skill to pay the activity on the debt at a while contained sooner or later. If the tax decrease are for people who will spend the money it reduces cost mark downs yet stimulates the financial device that could be a sturdy element in simple terms while the unemployment cost is severe yet won't sell long term boost

  • Anonymous
    1 decade ago

    Both. Long term and short term. Long term policies are like trade , import ,export , inflation, employment etcx and short term are demand , supply, prices, market controleing mechanism etc

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  • Eddy T
    Lv 7
    1 decade ago

    It changes and hard to predict just like the weather.

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