Answer to Question #154363 in Macroeconomics for Abdul

Question

Discuss the factors that might explain why the UK's forecast long-term trend rate of growth was reduced. (15 marks)

Answer 1

Answer:

Intoduction

Economics definition has to change according time

According me..

"Economics is the science of health of economy in which time requirement decision matter"

We have many factors of economic any agents of our economy which is affected our economy in ways 1)Good 2) Bad

Bad affect generated many bad thing like

Unemployment, low per capita, low investment, bad bank performance, No policy effect, experience is not working low performance of every sector

We always show economical up and down in these form like....

Inflation, deflation, stagflation, bloom, bust and recession

But according me "Passivization" also working

Which is working on the basis of decision.

 There are many factors which reduce the growth.....

1) Two sector economy :- Circular flow of money is not maintain

Absence of focus of two sector economy that's why GDP reduce

Focus on consumer sector in that periods

That's why reduce growth.

2) Assessment of economic climate judge only long-run not short run.

3) Less focus on microeconomics like price level, demand and supply and production.

4) Lack of readiness for challenging :-

 In covid19 affected on every part of economics... Cost..... Price, payers... Receive,

Seller... buyer, consumer..... Producer,

Performer asset.... No performer asset,

Export...... Import, physical..... Mentally and

5) Human capital:- last 10 decade human became only reproduction on capital resources not.

$\to$ Not a Branded capital.

$\to$ Absence of good training of human to fight again yourself.

6. Market health :- No focus on market health.

$\to$ Focus on consumer group.

$\to$ Investment part leave back, No investment $\to$ No capital $\to$ No production $\to$ no lounable fund.

How economy go ahead without performing factors of production.

$7.$ Focus on Primary Sector

$\begin{pmatrix} Secondary & and& Primary \\ sector& working \end{pmatrix}$

Like non performing asset.

It is a good time for appreciation of currency but no - one focus on it.

$8.$ Focus on Entertainment

No labour$\to$ No production $\to$ No capital $\to$ No investment $\to$ No growth.

$9.$ There are three pillor of growth$\to$ Infastructure, energy, accountability.

$10.$ Lack focus on Accountability :-

Employees being responsible for specific duties that go along with their job.

Without job it is not possible.

11. Requirement of job:-

Which type of tge requirement we have not focus on it -

There is spread two types of diseases -

Physical $\to$ Doctors

Economically $\to$ Economist

Conclusion :-

We have to work, not only one way. Even though need to do work in many ways with

$\to$ Technology and without Technology.

$\to$ Normally and non Normally

$\to$ Enhance your market criteria

$\to$ We need to change the definition of market, consumer as well as.