A. Investments in Education, Training, and Healthcare

What is Human Capital? 🧠

• Human capital is the education, training, skills, and experience found in a country's labor force.
• It's like the brainpower and abilities of the workforce! 🏋️‍♂️
• Think of your own studies; they're investments in your human capital.

Benefits of Education and Training 🎓

• Real World Example: East Asia and Scandinavia spend big on education, resulting in high returns.
• Quality education makes workers more skilled and productive, just like a professional athlete training hard for the game.

Health Care Investments 🏥

• Healthy workers = More productive workers.
• Like maintaining a sports car, keeping workers healthy means a smoother running economy.

 Public Investment in Infrastructure

What's Infrastructure? 🌉

• Roads, rails, water systems, power grids, etc.
• Think of these as the veins and arteries of an economy, making everything flow smoothly.

Benefits of Infrastructure 🚗🚊

• Real World Example: Good roads help companies to reach further markets.
• Ever tried going on a road trip with bad roads? Not fun!

 Public Investment in Research and Development (R&D)

Importance of Technology 💻

• R&D helps create new technologies, boosting long-term growth.
• Real World Example: Governments provide incentives for companies to invest in new products and processes.

Why does the Government intervene? 🏛️

• Imagine a chef who creates a fantastic new dish but can't serve it to everyone; governments help spread the goodness!

D. Industrial Policies

What are They? 🏭

• Policies to guide financial capital and investments to productive areas.
• Real World Example: South Korea's support for Hyundai, making it a global shipbuilding leader.

Pros and Cons 🥳🙁

• Can be excellent for growth but also wasteful if captured by business interests.

In Diagrams 🎨

• Shifts the LRAS and Keynesian AS curves right, showing increased output.
• It's like upgrading your computer's hardware, making everything run faster!

Demand-side Effects 🛍️

• Supply-side policies can also boost demand.
• Think of buying new running shoes; you boost the shoe company's supply, and your demand for running accessories goes up too!