Final answer:
To achieve economic growth, a nation can invest in physical capital, engage in international trade, and invest in human capital. Reducing the defense budget does not directly guarantee economic growth.
Step-by-step explanation:
There are several steps that a nation can take to achieve economic growth:
- Invest in physical capital: This involves increasing spending on infrastructure such as roads, bridges, and factories, which can help improve productivity and drive economic growth.
- Engage in international trade: This allows a nation to access new markets and resources, promoting economic growth through increased exports and imports.
- Invest in human capital: This includes spending on education and healthcare, which can improve the skills and health of the workforce, leading to increased productivity and economic growth.
It is important to note that focusing on increasing imports may not directly contribute to economic growth as it can lead to a trade deficit, unless it is balanced by increasing exports.
Moreover, while reducing the defense budget can free up resources for other sectors, it is not a guarantee for economic growth as it depends on how those resources are reallocated.