In this chapter we discussed four major determinants of growth in real output: increases in the labour force, increases in the stock of physical capital, increases in human capital, and improvements in technology.

a. For each of the four determinants, give an example of a government policy that is likely to increase growth.

b. Discuss the likely cost associated with each policy.

c. Does one of your proposed policies appear better (in a cost-benefit sense) than the others? Explain.