Sources of Long-term Economic Growth
During Week 4, we studied concepts related to the sources of long-run economic growth. This growth benefits our society by advancing our well-being and improving our standard of living over time. The paper assignment for this course asks you to define and explain examples of each of the sources of economic growth, and to develop proposals for economic policies that would encourage and promote each source of growth. First, review Chapter 19 and then click on the links below to read an article and watch the video on economic growth:
https://research.stlouisfed.org/publications/page1-econ/2013/09/01/what-are-the-ingredients-for-economic-growth/
https://www.khanacademy.org/economics-finance-domain/ap-macroeconomics/ap-long-run-consequences-of-stabilization-policies/economic-growth/v/understanding-economic-growth-ap-macroeconomics-khan-academy
You may read other articles as well and include them in your bibliography.
Using these resources:
1. Define the sources of long run economic growth.
2. Give an example of each of the sources of growth.
3. Propose one policy for each source of growth that could enhance or strengthen that source.
4. For you as an individual, what are the benefits of achieving strong economic growth in the United States? What are the main challenges?
5. Finally, at the conclusion of your paper please include a brief statement reflecting on what you feel you have learned from the assignment and how that learning may be applied to your life or work going forward.
Sources of Long-term Economic Growth
Long-run growth is defined as the sustained rise in the quantity of goods and services that an economy produces. In macroeconomics, long-run growth is the increase in the market value of goods and services produced by an economy over a period of time. The long-run growth is determined by percentage of change in the real gross domestic product (GDP). The long-run economic growth is determined by short-run economic decisions. The long-term economic growth of a nation can be attributed to the growth of measured factor inputs, such as physical capital, labor, and human capital, and to technical progress (including improvements in efficiency).
