A growing economy means that the economy is producing more and more “stuff”, eit

Question

A growing economy means that the economy is producing more and more “stuff”, either because it has more resources (workers), or uses those resources more productively (smarter, better workers, working with better machines and systems). A growing economy that produces more and more “stuff” normally means that the people have a higher and higher standard of living. If the government adopts a “free trade” policy towards all imports, including the low cost clothing question in which it places no barriers to importing items, can that action help the economy to grow? Explain your answer.

Explanation / Answer

a free trade policy towards all imports can help the economy to grow in a short term because consumer demand is likely to be driven up do to the benefit of having a "free trade" which means low or no tariffs making imports cheaper , but in the long run, imports will cause unemployment so economy will be dragged down by unemployment so whether the economy grows will have to depend on whether the import outweighs the unemployment...

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