Th2.5: Causes of Economic Growth Flashcards
1
Q
What does there need to be in order for economic growth to occur?
A
an increase in quality or quantity of one of the four factors of production: land, labour, capital or enterprise - or these being used more efficiently
2
Q
What do all economists agree regarding LRAS?
A
an increase in LRAS will increase the potential level of output in an economy
3
Q
Any factor which increases LRAS…
A
will also increase economic growth
