The Role of Government Spending in Achieving Sustainable and Inclusive Growth

• Increase in government spending can achieve sustained economic growth and inclusive growth
• Infrastructure spending and transfer payments can help achieve this
• This can reduce demand-deficient unemployment and create new jobs in the long run
• Subsidies and grants for firms can reduce cost of production and increase SRAS, reducing unemployment
• Larger transfer payments to lower income consumers and smaller firms can lead to fairer distribution of income and access to goods and services
• Training workers and promoting employment of senior workers can create productive employment opportunities
• This can also reduce structural unemployment
• Government spending can help achieve both short-term and long-term goals
• Inclusive growth is important for fair distribution of benefits of economic growth
• These measures can help reduce income inequality and promote social welfare.

Looking to test your knowledge on how government spending can achieve sustained economic and inclusive growth? Take this quiz to explore the different ways in which infrastructure spending, transfer payments, subsidies, grants, and more can help reduce unemployment, create new jobs, promote fairer income distribution, and enhance social welfare. Discover how training workers and employing senior citizens can lead to productive employment opportunities and reduce structural unemployment. Test your understanding of why inclusive growth is essential for achieving fair distribution of the benefits of economic growth. Take this