Answered: In economics, we should know about the…

In economics, we should know about the standard of living, the knowledge about Solow growth model and endogenous growth model of a country. Why it is so importance to know all of these?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Economic Growth

It means the rise in the manufacturing levels of a country’s products/services over a while. It is calculated in terms of the real income of the people of the country. When the production of products/services begins, the manufacturers will hire employees, which in turn raises the income of the people and it will also raise the buying power, this eventually leads to the circulation of money that directly helps in the increase in the Gross Domestic Product (GDP). Thus, GDP is calculated by economists to calculate the growth in the country.

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In economics, we should know about the standard of living, the knowledge about Solow growth model and endogenous growth model of a country. Why it is so importance to know all of these?

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