In the long-run, the aim of the Australian government is not just to recover from the current recession and reduce the output gap to zero but also to increase the potential output of the economy. What economic policies do you advise to the Australian government to increase the potential output of the Australian economy in the long run. (300 words)
SOLUTION:-
* The output in then long run will increase when the labor force increase, the capital increases in the economy or the technology changes. My advice to the Australian government will be to:
* All these measures will help increase the outcome in the long run.
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