Question

what are three main sources of economic grwoth in any economy? how can increased investment help a countey achieve increased ecomomic growth?

Answer 1

There are three main factors that drive economic growth:

1)Accumulation of capital stock

2)Increases in labor inputs, such as workers or hours worked

3)Technological advancement

increased investment help a countey achieve increased ecomomic growth. Investment means increase in capital formation by having increase investment in diced assets and machinery which help in further production. Increase in production is of high quality at minimum cost. It leads to increase in employment and real GDP. At the same time national income also increases.Therefore, investment leads to economic growth.