What causes economic growth, Macroeconomics

Assignment Help:

What causes economic growth?

Causes of economic growth:

Into the Solow model, economic growth is based onto the quantity and quality of technology and resources.

Growth is accomplished by:

a. Increasing the quantity of resources accessible to a country by:

• Net investment into the present time period to raise the amount of producer goods obtainable into future years

• An increase into the size of the working age population by

1. Immigration as short term

2. Population growth as long term

b. Enhance the quality of resources by productivity gains as more result for each hour worked resulting through better:

• Education and training to enhance labour skills,

• Complementary factors as an example, introduction of latest technologies or enhanced capital

• Management practices as like introduction of superior production lines processes as like  Just in Time delivery of elements

c. Implementing latest technologies as like the Internet Economic growth can be demonstrated by an outward shift into the production possibility boundary.


Related Discussions:- What causes economic growth

Break-even level of income, Assume that when an economy has a GDP of $500, ...

Assume that when an economy has a GDP of $500, Consumption is $550. The MPC is .75. Investment is 25. Begin the problem by setting up an Income/Consumption Schedule like the one on

National income, What is green GDP and How it is evaluated ?

What is green GDP and How it is evaluated ?

Aggregate demand and aggregate supply model, In the late 1990s, a growing n...

In the late 1990s, a growing number of economists expressed concern that the world policy makers were often focusing too much on fighting inflation, without fully taking into accou

Marginal cost curves, Marginal cost curves generally slope: a) downward ...

Marginal cost curves generally slope: a) downward because of decreasing opportunity cost b) upward because of decreasing opportunity cost c) downward because of increasing opp

Negotiations between customers, In 1999 Mercedes-Benz USA adopted a new pri...

In 1999 Mercedes-Benz USA adopted a new pricing policy, which it called NFP (negotiation-free process), that sought to eliminate price negotiations between customers and new-car de

Commercial banks: balance sheet, Commercial Banks: Balance Sheet The ac...

Commercial Banks: Balance Sheet The accompaning table gives the balance sheet of a commercial bank in a simplified format. The balance sheet contains particulars of a Bank's cu

Money supply unanticipated increase, What impact will an unanticipated incr...

What impact will an unanticipated increase in the money supply have on the real interest rate, real output, and employment in the short run? How will expansionary monetary policy a

Classical labour market, using a classical labour market , illustrate the e...

using a classical labour market , illustrate the effects of a real wage existing in the market that is lower than the equilibrium real wage. what will eventually happen in this lab

Describe effects of hours spent studying, Design a hypothetical ideal rando...

Design a hypothetical ideal randomized controlled experiment to study the effects of hours spent studying on performance on microeconomics exams. Suggest some impediments to implem

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd