Stagnant growth occurs when Supply of products is not increasing or it is decreasing below the benchmark. An increase in the total production of goods and services is generally needed for growth of the economy. This is required to keep pace with an increase in the population and expectations of rising living standards. Stagnant growth exists if total production does not keep pace with these expectations. Hence the macroeconomic goal of economic growth is not attained. The probable reasons for stagnant growth can be associated with the quantity and quality of the resources used for production. So let’s understand the reasons in detail. The quantities of the four factors of production can restrict the growth of production. These factors are labor, capital, land, and entrepreneurship. If a lazy person decides to quit his job and spend his time doing nothing but sleeping on his parent’s living room sofa, then the total quantity of labor declines. Thus the quantity of labor is based on both the overall population and the portion of the population willing and able to work. If for example, Government regulations and High taxes discourage some industries to build new factories in the manufacturing sector, it will totally decline the quantity of capital. So this is all about the Macroeconomics Problems. If you have any further input on this article, you may notify me through the comments below this article. Learn the juice of this article in a minute through Macroeconomics problems Infograph
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Stagnant growth occurs when Supply of products is not increasing or it is decreasing below the benchmark. An increase in the total production of goods and services is generally needed for growth of the economy. This is required to keep pace with an increase in the population and expectations of rising living standards. Stagnant growth exists if total production does not keep pace with these expectations. Hence the macroeconomic goal of economic growth is not attained. The probable reasons for stagnant growth can be associated with the quantity and quality of the resources used for production. So let’s understand the reasons in detail. The quantities of the four factors of production can restrict the growth of production. These factors are labor, capital, land, and entrepreneurship. If a lazy person decides to quit his job and spend his time doing nothing but sleeping on his parent’s living room sofa, then the total quantity of labor declines. Thus the quantity of labor is based on both the overall population and the portion of the population willing and able to work. If for example, Government regulations and High taxes discourage some industries to build new factories in the manufacturing sector, it will totally decline the quantity of capital. So this is all about the Macroeconomics Problems. If you have any further input on this article, you may notify me through the comments below this article. Learn the juice of this article in a minute through Macroeconomics problems Infograph1
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Stagnant growth occurs when Supply of products is not increasing or it is decreasing below the benchmark. An increase in the total production of goods and services is generally needed for growth of the economy. This is required to keep pace with an increase in the population and expectations of rising living standards. Stagnant growth exists if total production does not keep pace with these expectations. Hence the macroeconomic goal of economic growth is not attained. The probable reasons for stagnant growth can be associated with the quantity and quality of the resources used for production. So let’s understand the reasons in detail. The quantities of the four factors of production can restrict the growth of production. These factors are labor, capital, land, and entrepreneurship. If a lazy person decides to quit his job and spend his time doing nothing but sleeping on his parent’s living room sofa, then the total quantity of labor declines. Thus the quantity of labor is based on both the overall population and the portion of the population willing and able to work. If for example, Government regulations and High taxes discourage some industries to build new factories in the manufacturing sector, it will totally decline the quantity of capital. So this is all about the Macroeconomics Problems. If you have any further input on this article, you may notify me through the comments below this article. Learn the juice of this article in a minute through Macroeconomics problems Infograph
1
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