State two ways in which the government can promote economic developmen

1.	State two ways in which the government can promote economic development.
Answer» Ways in which the government can promote economic development are : 1. Increase in Public Expenditure : If public expenditure increases, it will lead to an increase in money supply which will in turn increase the per capital income over a period of time. 2. Export Incentives : If exports are encouraged, the net factor income earned from abroad rises which will lead to an increase in Gross National Product (GNP). 3. Infrastructure Development : Public sector investment in the infrastructure sector like power, transport and communication, heavy industries, education, etc. paves the way for agricultural and industrial development of a country.

State two ways in which the government can promote economic development.

Answer»

Ways in which the government can promote economic development are :

1. Increase in Public Expenditure : If public expenditure increases, it will lead to an increase in money supply which will in turn increase the per capital income over a period of time.

2. Export Incentives : If exports are encouraged, the net factor income earned from abroad rises which will lead to an increase in Gross National Product (GNP).

3. Infrastructure Development : Public sector investment in the infrastructure sector like power, transport and communication, heavy industries, education, etc. paves the way for agricultural and industrial development of a country.

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