Evaluating a Long-Term Economic Growth Strategy

A country's central bank permanently increases the rate of money supply growth in an attempt to create a higher rate of long-run economic growth. Based on the factors that determine an economy's long-term potential, what is the most likely outcome of this policy?

Analysis of Demand-Side Policies for Long-Run Growth

A government's decision to permanently increase its budget deficit to fund new infrastructure projects will guarantee a higher rate of economic growth in the long run.

Match each economic policy with its most likely long-run effect on the economy.