How can world economy grow or decline?

Question

I always thought there's only a certain amount of money in the world.

As you can see Im completely new to economics so any thorough explanation will be greatly appreciated.

Answer 1

Growth has nothing to do with money. Growth occurs when people work more productively (in other words, when they have machines that do actual work). Consider agriculture, for example. 200 years ago, the vast majority of human beings alive were involved in growing food and raw materials for making clothes. Today, 3-5% of the population are perfectly capable of producing enough stuff to feed and cloth the entire society. Why? Because today's farmers no longer sow and reap by hand or even with horse-driven implements...

Answer 2

Money is just for score keeping really, the measure is production of goods and services.
As more things are made and bought, the economy grows. More people helps this, but also people having or using more things helps.

Answer 3

The west became into engaged in manipulating oil expenses. whilst the Soviets had to import some thing, they had to pay with had distant places funds, because of the fact the Ruble became into valueless on the international distant places funds industry. Their purely source of annoying distant places funds got here from exports, chief between them became into oil. With oil expenses held artificially low, they weren't making as much as they could desire to have been, in the oil industry by using the time 1990 rolled around.

Answer 4

its not about money but resources, the world economy grows as a result of better utilisation of resources and also the discovery of new resources