Long Run Economic Growth in Microeconomics

Among the primary goals that countries in the internal system are the factor of economic growth. Economic growth refers to an increase in the market value of the goods and services of a country that produces over given time. In measuring the economic growth of a state, the measurement is based on the rate of the percentage change in the real gross domestic product (GDP) of the country. Long-run growth is an economical type of growth that is defined as the sustained and steady rise in the amount of the goods and services produced by a given economy (Dincecco, and Kate, 2016).In essence, the domestic growth production of a given country is directly related to the population growth of the country. Additionally, the economic growth of a state is also associated with the prices that are allocated to goods and services within the country (Van den Berg, 2016)

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The aspects of demand and supply of a given country are also significant in affecting the economic growth of a nation. There are several factors the affect the long run wealth of an economy. Among the factor that affects the long run growth of a country include the growth of productivity. The growth of productivity refers to the actual ratio of economic outputs and economic inputs. The Increase in productivity results in the drop market price. Also, the lowering of the market price results to the increase in the number of demands of a good or a service. The increase in the need for good is further responsible for the creation of higher revenue.

Demographic factors are also responsible for influencing the economic growth. The changing of the employee to population ratio affects the amount of productivity. Also, the quality and the quantity of the goods and services that are produced in an economy affect the long-run economic growth. The age structure that is present in a country also affects the long-run economic growth. This is by the fact that youthful individuals are in the position to work and contribute to the economy of a nation, as opposed to old persons and children in the population. The labor force participation that is present in an economy also determines the nature of the economy long run growth of the particular economy (Fornaro, 2015). In the instance that the economy has enough number of employees, the amount of work that can be done is at the optimal percentage. As a result, the economic growth of the country of the country is guaranteed. However, in the instances where the labor force participation is low, less amount of work is performed, and as a result, the economic growth of the country becomes significantly low. A stable percentage of death rates and birth rates in an economy also results in a permanent nature in the economic pattern of the nation.

You are told to talk about the causes of economic growth, and focus on the long run policies, such as taxation and education.

The economy of Japan has been in the position of experiencing significant growth in the recent years. The success in the economy of Japan is attributed to the ability of Japan to incorporate the west culture with its traditional lifestyles. Japans success is attributed to different factors, including the fact that it makes significant use of the free markets of the world. To this respect, it has swiftly accelerated and ranked among the world's topped ranked and most potent market. However, this factor is a subject open up to debate due to the reasoning that Japan's economy is not yet as viable. Before the arrival of Commodore Perry during 1853 Japan's economy was not at par with those of other world class economies. Japan was isolated and did not conduct much significant trade with other major economies. Thus its economy experienced a slow growth rate.

The loss that Japan suffered in the second world war was also significant in slow growth in the economy of Japan die to the fact that it had lost significant labor force that was necessary for the success of its economy. Also, the loss rendered japan broke. Consequently, it had significantly small amounts of funds to use in taking appropriate care of the country. The success experienced in the economy of Japan is however attributed to different factors. Among the significant factors that are linked to the viable economy of Japan include the fact that the social class broke down as a result of the conscript army and the victory it has gained against the Satsuma rebellion. Also, in the bid to improve its economy, Japan adapted different measures and approved of different policies.

Among the measures that Japan adopted with regards to policies is that after the second world war, it imposed low-interest rates on its manufactured goods. The reason behind the adaptation of these low-interest rates was aimed at reducing the prices of the goods manufactured by Japan. Consequently, the Japan economy would improve in the world market. The amounts of taxes imposed on the Japanese manufacturer goods are also at significantly low amounts in comparison to the taxation imposed on the goods manufactured in other countries such as the united states and even China. These low amounts of taxes are meant to attract consumers and buyers to the goods manufactured in Japan by creating lesser prices for them. As a result, to this fact, the economy of Japan would be boosted by it conducting a significant number of exportation of manufactured goods to other countries.

Japan has also gained so much insight from the west, with it being in the position to incorporate the western culture to its own traditional culture, thus experiencing significant economic growth. Japan has gained technological insight from the culture of the west and integrated into its own culture. The Japanese have consequently received significant education on technology, resulting in a significant technological advent in Japan. Japan has, therefore, become a major manufacturer and exporter of machinery thus a significant economic growth.

The pricing strategy that is used in Japan also offers the domestic goods significantly low prices in the local market. These low prices for the commodities are aimed at ensuring that the highest number of the Japanese population is in the position of accessing the basic needs. This is significantly important as the government gets from having to invest so much on the welfare programs; thus the funds that could have otherwise been spent on welfare programs are used in other factors of the economy. The subsidized prices of goods in the Japanese domestic market is also aimed at discouraging the importation of manufactured goods from other countries, and the citizens get encouraged to use the locally produced products that are much cheaper than the imported product. As a result, the government gets to save the money that could have been used in importations.

Also, the government gets to earn revenue from the taxation of locally manufactured products. Apart from the fact that Japan has managed to ensure that its economy slowly grows to a world-class economy, Japan is however faced with the problem of national debts. The country has been on the negative side with regards to borrowing money internationally. The borrowed money was meant to create a better economy and infrastructure for the country. However, the depts have remarkably risen to dangerous amounts. Currently, the mount is approximated to 160% of the gross production of the nation. To take care of the national debt and deficits without affecting the economy of the country, Japan is forced to adjust its structures so that shortly, it will be able to increase the taxes paid to its goods to raise funds to take care of the national debts and deficits.

In particular, how these policies affect the balanced growth rate?

The financial policies that are set in place by Japan are meant to work towards creating positive economic growth for the country. In essence, the policies are intended to draw the attention of the citizens and the international community towards using the Japanese products. By this, Japan expects to earn a substantial amount of revenue that could take care of national debts and income, in addition to boosting the economic growth of the country. The policies, however, affect the balance growth rate of the Japanese economy. The taxes that are set are extremely law. As much as the low taxes serve the purpose that they were meant for of attracting both the local Japanese community and the international community to using products from Japan, the amount revenue that is raised is significantly low. In this respect, this amount of revenue is not sufficient in its self. The amounts raised are not enough to foster economic growth in addition to enabling the payment of the Japanese depts and deficits.

The pricing strategy that Japan uses of offering law prices significantly to its goods also plays the role of attracting more buyers, but the amount of the income that is generated is much low. Due to this fact, the long run growth rate of the Japanese economy seems to be moving towards the negative direction. This is proven by the fact that Japan continues accumulating national debts, with the debts raising by approximately 8% annually. The policies that are set with regards to the finance causes the country to earn a minimal amount of revenue that is not enough for the entire population of the country (Lockwood, 2015). Consequently, the country continues borrowing money in the bid of supporting the economy. The result is therefore that despite the fact that Japan is one of the main exporters, and that it is known as a major a manufacturer, its economy is negatively affected and keeps moving to the negative direction.

Give a concise critical evaluation of contemporary macroeconomic issues of the global economy to a specialist and non-specialist audience

Macroeconomics is the social science discipline that is concerned with studying the manners in which the reputations that are caused by the actions of persons and organizations especially affect the way in which scares resources are utilized and distributed (Borio, 2017). Additionally, the subject of Microeconomics elaborates the reason and strategies behind the difference in pricing of different goods and services. The subject is also concerned with the manner in which persons make decisions that are more efficient or more productive. Macroeconomics is also involved with elaborating the manner in which individuals best coordinate and cooperate with one another.

Distinguish and select the appropriate analytical tools for macroeconomic problem solving

In solving issues with regards to the macroeconomics, the macroeconomic policies are used as the tools for the settling of the problems. The policies are concerned with the manner in which the entire economy operates. The main aim of the macroeconomic policy is to provide a stable economic environment that is suitable to support strong and desirable economic growth (Ampudia and Van 2017). In essence, it focuses on the creation of jobs, increased wealth and improved living conditions. The main aspects of the macroeconomic policy include the fiscal policy, monetary policy and exchange rate policy. The fiscal, economic policy is a macroeconomic tool that operates through changes in the level and composition of government spending. It also works through a change in the level, and types of taxes apply on goo sans services. Also, it operates through the level and form of government borrowing. Through the policy, Governments can directly influence economic activity through recurrent and capital expenditure. The government can also cause indirect influence through the effects of spending, taxes, and transfers on private consumption, investment, and net exports. This is the only tool of macroeconomic...