Economy in Long Run

Economy in the long run There are g overnment issue of factors which determine the long run growth of the US economy. The elemental factors are called the factors of production land, assiduity capital and entrepreneurship. Without these four factors it would be impossible for any economy to grow or go for growth in the long run. When the economy grows the standard of musical accompaniment in a country usually rises. Consumers will wipe out more money to consume goods thus creating more investing (capital). This is a circular flow. GDP (Gross Domestic Product) is used to amount of money the size of the economy from year to year. Real GDP in the ground forces has magnanimous over time. The number of people in the US labor force has change magnitude over the early(prenominal) 20 years thus contributing to the overall scotch growth of the USA. The graph below shows the labor force employment pace for the past 20 years. While the participation rate seems to be pretty steady between 60-65% if you take into the narration the improver in population in the country the labor force has been change magnitude thus more and more workers were usable each year. Since the participation rate has remained the same and the population has change magnitude substantially over the past 20 years this office there has to been a lot of investment to create parvenue jobs.

The graph below shows the amount of private investment over the past 20 years. As you can see it has increased year over year, which shows the economy was growing to accommodate the increase in population. The investment in the USA economy has grown steadily over the past 20 years and change surface when it declined during early 90,s and 01-02 it was for a very short period. I conceptualize that investment and labor are going to be very important in contributing to the economic growth indoors the next 20 years with the addition of land. With the population increasing each year the numbers of resources are reduced. There is simply a limited amount of land in the USA to support the growing population. Eventually the lack... If you want to get a full essay, order it on our website: Ordercustompaper.com

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