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Aggregate economic growth is nothing other than growth in Gross Nationa Product or GNP. This is the sum total of (consumption+investments+governament spending+net exports). You see in this investments is the second term in the formula. When this is increased the GNP goes up too and hence aggregate econconmic growth rise.

2006-12-14 04:49:46 · answer #1 · answered by Mathew C 5 · 0 0

It should... That is a pretty broad statement, but business investment spending should generate new jobs and in turn economic growth in the area where the investment is.

2006-12-13 09:56:25 · answer #2 · answered by John Stamos 3 · 0 0

marketplace forces will step in to fulfill the decision for by increasing furnish.... which ability production of things must be higher . if that achieved, then there is boost in boom. so, the relation is implicit.

2016-11-26 01:32:56 · answer #3 · answered by ? 4 · 0 0

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