Answered: Discuss the sources of long term…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

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Discuss the sources of long term economic growth and provide possible solutions to stir the south african economy

Definition Definition Increase in the amount of goods and services produced by a country in a given period of time compared to an earlier period. Economic growth is generally coupled with a rise in national income or the purchasing power of individuals. It is often measured in terms of the increase in a country's gross domestic product (GDP), or the overall monetary value of all the complete or final services and goods that a country can produce within its domestic boundaries in a specific period.

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Introduction

Economic growth is defined as a rise in the production of economic products and services from one time period to the next. It can be calculated in nominal or real (inflation-adjusted) terms. Although other metrics are occasionally employed, aggregate economic growth is traditionally assessed in terms of gross national product (GNP) or gross domestic product (GDP). When a country's economy has the ability to create more, it expands. The amount of capital, labour, natural resources, and technology available determine production. Policies that encourage the accumulation of any of these lead to economic growth.

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