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can try to raise the growth in living standards in a society. Are there any
drawbacks to these policies?
CONCLUSION:
T H E I M P O R TA N C E O F L O N G - R U N G R O W T H
In this chapter we have discussed what determines the standard of living in a
nation and how policymakers can endeavor to raise the standard of living through
policies that promote economic growth. Most of this chapter is summarized in one
of the Ten Principles of Economics: A country's standard of living depends on its
ability to produce goods and services. Policymakers who want to encourage
growth in standards of living must aim to increase their nation's productive ability
by encouraging rapid accumulation of the factors of production and ensuring that
these factors are employed as effectively as possible.
548 PA R T N I N E THE REAL ECONOMY IN THE LONG RUN
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