Lisavia Economic Policies

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Good afternoon, President of Lisavia, as your economic advisory to raise the nation’s productivity, we will need three economic policies that ensure the nation increase of standard living. To influence the growth rates the president can use technological knowledge to help. Also making an investment from abroad can help as well. Don’t forget to give an education and health and nutrition to people of Lisavia as their labor is the driving force. By utilizing technological knowledge people can understand the quickest and most efficient way to produce the goods and services. With technology the workload on the people would be less stressful and produce more products. For example “, thanks to advances in farming technology, a small fraction of the population can produce enough food to feed the entire country” (Chap 12). It helps improves the economy. Technological knowledge refers to society’s understanding about how the world works. Human capital refers to the resources expended transmitting this understanding to the labor force. To use a relevant metaphor, technological knowledge is the quality of society’s textbooks, whereas human capital is the amount of time that the population has devoted to reading them. Workers’ productivity depends on both.…show more content…
By doing so can increase a country’s saving rate can increase investment and, thereby, long-term economic growth. As the investment can increase the capital stock of the economy that to higher productivity and higher wages. This is the best way for a low income country to help build an empire. So it's a great way for the president to do. “Investment does increase the economy’s stock of capital, leading to higher productivity and higher wages. Moreover, investment from abroad is one way for poor countries to learn the state-of-the-art technologies developed and used in richer countries”(chap

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