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Suppose you live in a country called the United Federation of Republics, or UFR for short (I made it up). UFR is a wealthy developed nation with a high GDP per capita. The nation has a large national wealth with a big capital stock and high amount of physical capital per worker. They are high levels of human capital in the work force and the nation is known for its innovation and technological advances. While things have been positive overall, the GDP per capita growth rate has begun to slow a bit. The real GDP per capita growth rate was 3% a year from 1970 -2000. But since the year 2000, the rate has fallen to 2% year.
Now its election season in your country and there are politicians laying out their plans to keep UFR a prosperous nation and to push the growth rate back up to its previous levels.
One candidate, Mr. Jones, has a plan he says will push growth back to its previous level. His plan has 4 pillars. A summary of his plan and the four pillars is below:
For this essay you are to evaluate Presidential candidate Mr Jones' plan to increase the economic growth rate. For each pillar/element of Mr. Jones plan, explain why it will or will not help increase the growth rate of GDP per capita and improve the standard of living in the country.
Finally at the end of your essay give your overall assessment of the plan and any recommended changes you would make to improve the plan.
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