Summarize the four supply factors in economic growth.
What will be an ideal response?
The four supply factors in economic growth are the quantity and quality of the natural resource base, the quantity and quality of the labor force, the supply or stock of capital goods, and the state of technology. Expansion or improvement in any of these areas will increase the potential size of an economy’s GDP.
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Suppose that for the nation of Calliope, the debt-to-GDP ratio is 325%, the average annual growth rate is 1.1%, the average inflation rate is 0.5%, and the average nominal interest rate is 2.2%
Based on this information, determine if fiscal policy is sustainable in Calliope, and if not, what the primary budget deficit would have to be to make fiscal policy sustainable.
Which of the following limit the direct creation of new jobs through foreign investment?
a. Availability of large number of unemployed workers b. Nature of the industries in which investment is allowed c. Low cost of setting up the capital-intensive industries d. High percentage of youth in the country's population e. Regulation on technology transfer