Economic growth involves a change in the way goods and services are produced over time. It is not only an increase in the capacity of an economy to more produce goods and services in order to earn more money. Economic growth is a long-term expansion of the productive potential of the economy. Sustained economic growth may lead to an increase in living standards and rising in employment. Economic growth is measured in terms of gross national product (GNP) or gross domestic product (GDP).
This involves various facet of the economy which includes, for example, the discovery of more natural resources, investment in physical capital, growth in population, investment in human capital and most importantly, technology. To determine economic growth in a country is to calculate its Growth Domestic Product rate. With a promising economic growth,
1. INTRODUCTION Economic growth is how our country uses scares resources in order to improve the economy. Examples of scarce resources are coal, gold, diamond and raw materials. In order to be profitable we need to use these resources wisely and without any waste, do anything valuable to get money. This is where the business cycle is relevant.
Even one of the determinant forces behind the economic development of the high standard of living countries was agriculture (Entringer and Jaeger, 1968)13. Agriculture should be given more importance in third world countries, since agricultural contribution to GDP and export earnings from it, could be a potential source of economic development for those countries, and in these countries agriculture represents main source of income of the majority of population (Dietrich Kebschull,
Only capital cannot bring development in the country. It is technical progress along with capital which can boost the rate of economic growth. The impact of technology can be judged by the following 1. Use of Natural Resources :- Technology helps to utilize the natural resources like land ,material more effectively. 2.
The business cycle which is also known as the economic cycle is the fluctuation in economic activity that an economy experiences over a period of time. It can be defined as the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. Each business cycle has four phases. They are expansion, peak, contraction and trough. Though the phases don’t occur at regular intervals, they have some recognizable indicators.
The global economy has been in a rapid growth in the last decades, although there has been periods of recessions, nonetheless it is undeniable that the produce and goods we enjoy today are only possible due to an intricate system of international commerce as well as the manufacturing capabilities of recently industrialized nations. However if we view the state of affairs a hundred years ago we recognize that there were significant developments in the early 20th leading till today. Colonialism and protectionism are the key traits of the global economy in early 20th century. Thanks to the increase in foreign investments, as well as the decrease in transportation costs, the European colonial powers shifted progressively towards its colonies to
The new technology such as the steam engine, or the factory system are all linked together and supported each other, the steam engine helped the factories, the factories opened up a new industry, together the technology that was developed were revolutionary, and paved a new standard of modern technology. The contributions were positive, and as a result of that, it resulted to economic growth, which fuelled the start of a new era. Technological advancements had a very powerful effect on the economy, thus it proves that the developments contributed to economic changes to a very high
This economy is influenced by demand and supply, so the price is set by the demand of customers and the supply of products instead of the government. Countries that run with this economic system are the US and Japan. The advantages in this economy are that businesses are highly motivated by the profits to make products that customers actually want. So, customers and businesses have the freedom to buy and produce whatever they want. Another advantage is that since plenty of businesses produce the same good or service, the competition will ensure that consumers get their products or services at the best price.