Economic Growth Assignment

Economic Assignment

Economic growth -by Elbert Economic growth is a tool always use to the government, use some data to compare with economic develops. So in my assignment I will talk about what is economic and why it important; how economic growth occurs with some policies; and describe how does that two countries government use policies control the economic.
The economic growth definition is the percentage increase in national output, normally expressed over a 12 month period. Actual growth is the percentage annual increase in national output, that means the rate of growth in real GDP(Gross Domestic Product). The real GDP measure the included value of goods and services for economic

Found the new raw materials, for example use the natural gas to instead oil.
5. Innovative new technological, like the internet change can help economic growth.

The government has some policies to control the economic growth: supply side policy, monetary policy and fiscal policy. The supply side policy is a range of measure to rise aggregate supply, use this way to increase productivity of the economy, it means use increase the production’s quality or quantity like land, labour, capital and so on to increase the economic growth. The government use supply side polices to intervention control increase growth and promote stability, then lead to increase potential long-run aggregate supply. As the diagram shows, a good supply side policies can shift aggregate supply curve right, like reduce taxes rates to incentives for employees to find work, thus increase real GDP and reduce price level.

Secondary is monetary policy, it is government influence on the economy through affecting the amount of money in the economy. The Centre Bank control the money supply and rates, like interest rate, to influence the growth. The Centre Bank usually change the interest rate, buy or selling the government bonds and volume of credit to keep

We can form three part to analysis how increase growth.
1. First of all, for labour, we can increase the population employed, like in fiscal policy to reduce the tax to encourage people found job, maybe sometimes government can reduce social welfare. And encourage women to found job, because more productive forces can get more profit, in America 75% people have job.
2. Then for capital, the Centre Bank can reduce the interest rate and low tax on business, this can stimulate many people borrow from bank, and offer more job get more profit to increase economic growth. And it also can attract many foreign investment, it can increase export rate.
3. In the end, for education and training. If government pay more money to increase education level, it useful to increase technology, in USA the internet users is 87.36%, on internet the business can contact with foreign customers to rise the export, and new technology can reduce the transportation cost, before I said movies transportation maybe send by e-mail, it cost near by 0, but it has more profit for business, the net exports income also can increase