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(i) How do we measure economic growth and why do we need economic growth?
(ii) What can governments do to stimulate economic growth and create jobs? (provide some current examples)
(iii) Should government/s support the renewable energy industry and how?
(iv) What is inflation and what impact does it have on the economy?
1. Suppose that there is a credit market imperfection because of asymmetric information. In the economy, there are N consumers. A fraction b of consumers consists of lenders, who e
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