Explain how an economy can achieve sustainable economic growth and analyse the different methods of measuring economic growth?
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.
Expert Solution
Sustainable economic growth
An ecosystem is necessary for an economy to function since it supplies the land, natural resources, labour, and capital needed for production. In order to prevent their depletion and ensure that they are available for future generations, sustainable economic growth involves managing these resources. The economy may grow in a variety ways, including a rise in the quantity of physical capital goods, technical advancements, labour force expansion, and increases in human capital. Therefore, sustainable economic growth refers to a rise in the production of economic goods and services that satisfy human needs while ensuring the sustainability of natural resources for future generations. To attain rapid rates of sustainable economic growth, key factors are,
A government that is willing to create efficient and open public management of the economy, fostering a favorable climate for business and industry, would eventually improve its capacity to fulfill its duty to ensure the welfare of the people.
Infrastructure is the foundation for business that promotes entrepreneurship, promotes competition and market expansion, imports outside knowledge, and optimizes investment prospects. A developed and maintained infrastructure, including a network of roads and communications, that permits access to and movement among markets.
A workforce that is diverse, skilled, and qualified to meet the needs of the economy; a social and economic environment that upholds equality of opportunity for both men and women; sustainable and responsible management of natural resources; and appropriate responses to climate impacts that promote the economy's long-term efficiency.
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