More Investment Leads to Economic Growth in the Long Run
Investment adds to the stock of capital and the quantity of capital available to an economy is a crucial determinant of its productivity. A Some people will have higher incomes as the result of faster economic growth. Causes Of Economic Growth Economics Help Growth accounting measures the contribution of each of these three factors to the economy. . Economists generally agree that the rate of money growth is one determinant of an economys inflation rate in the long run. The long-run economic growth is determined by short-run economic decisions. Short-run actual growth and long-run potential growth. There might be a transition period in which workers and owners in. Investment thus contributes to economic growth. Higher investment levels lead to higher growth rates and productivity in the long run. More investment leads to _____ economic growth in the short run. Economic growth refers to an increase in outpu...