Question

1. Utilize an aggregate production framework to discuss how education can create economy growth

Macroeconomics

Answer 1

Aggregate production framework creates an estimated framework for the determination of how much of a growth of economy is related to changes in capital or changes in technology. A usage of better robust capital investment, high level of human capital investment, and continual improvements to technology can lead to economy growth. Economic growth in terms of production occurs when a nation's resources such as capital investment and natural resources like land become more productive.

Education plays an important role as a human capital investment that improves future legitimate work opportunities. This also discourages participation in crime. As there is a clear linkage between education, poverty reduction and sustainability, it often uses education as a short-hand for promoting economic growth. Education is highly relevant and has the potential to equip individuals with skills required to improve their livelihoods, thus holds the power to transform people’s lives. It intends to promote inclusive and sustainable human development and put efforts to reduce poverty in all its dimensions. Productivity has grown higher in states with more growth in the educational attainment of the workforce. Thus there is a positive relation between the increase in the level of education and economy's growth rate of United States.