ECON WEEK 7 Assignment Example | Topics and Well Written Essays - 250 words

ECON WEEK 7 - Assignment ExampleThe economy was still in the phase of recovery, when the recent forecast by the International pecuniary Fund shattered all hopes of US regaining its status as the worlds largest economy. The IMF forecasted that China will surpass US by 2016 turn US will experience s lower-ranking and modest economic growth. (US Economic Forecast, 2013) The factors that have impeded US economic growth include low GDP growth rate, low employment rate, dip in inflation rates, low interest rates and, most significantly, a major current figure balance deficit and a higher debt risk. In such a scenario, the government should focus on productivity gain as a lineage of economic growth through improvement in skills, economies of scale and improved technology. (Petroff, 1986, 1990 & 2002) This would help in offsetting the effect of the law of diminishing returns, by ski lift productivity growth in the face of an uncontrollable population