Answer to Question #234772 in Economics for ABCD

Question

Explain how an increase in the demand for goods and services contributed to industrial developments

Discuss discuss the government's involvement in trade through taxes and infrastructure

Answer 1

An increase in the demand for goods and services will increase the quantity produced, as a result increase in production will cause industrial development.

The government can boost demand by increasing spending and cutting taxes. Tax cuts increase household demand by increasing workers' take-home pay.