An examination of demand-oriented growth in the Liberian economy (1970/84)

TL;DRAbstract

The role of government expenditure is very important to the growth of the economy. There has been a continuous rise in government spending such that Liberia is faced with serious debt problems and growing deficits. It is with this concern that the researcher has employed the macroeconomic theory to examine the components influencing the growth level in the Liberian economy. The purpose of this research is to forecast the level of growth in the Liberian economy with gross domestic product representing the total output level of the economy, i.e., the growth level. It is hypothesized that the country will experience growth in terms of an increase in its total output (GOP = Y) which is influenced by an increase in aggregate demand. The components of GOP, Y, are: Cp =personal consumption; I=increase in capital stock; G =government purchases; and X- M =net exports. A macroeconomic model is built based on the theoretical equation Y = Cp + I + G + (X - M), using the accounting framework. The f

Chat with Paper

AI Agents for this Paper