Question

What steps would you expect to see middle income economies taking in order to grow their economy?

Answer 1

Steps we expect to see middle incoms economies taking in order to grow their economies are-

Firstly their should be rise in aggregate demand .This should be done for following reasons

• Low interest rates - cost of borrowing should be reduced and spending of consumer should be increased
• There should be higher global growth as spending on export is increasing.

Secondly there should be growth in the productivity. This should be due to following reasons

• as new management techniques should be introduced like better relationship with the workers would be productive and efficient
• The qualification and skills of workers should be improved.
• Increasing the age of retirement and hence increasing the labour supply