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Homework answers / question archive / How and why government and central bank of an economy try to achieve economic growth?

How and why government and central bank of an economy try to achieve economic growth?

Economics

How and why government and central bank of an economy try to achieve economic growth?

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A government and central bank  can set out to determine  the rate of economic growth through demand-side and supply-side plans , Expansionary budgetary  plans- cutting taxes to build up nonreturnable  income and uplift  spending. However, lower taxes will build up the budgeted losses and will lead to higher borrowing.