Question

10. List and describe four determinants in per capita GDP growth.

Answer 1

Economic growth is determined by interrelated factors that affect the Economic growth rate. There are six main factors which determine growth Of these, output and demand are classified under the supply determinants and the other two.

The four supply factors are natural resources, capital goods, human resources and technology and they have a direct effect on the value of good and services supplied.

GDP-measured economic growth means the growth rate of GDP but it's very different what determines each component's increase. Public spending, capital development, private or public investment, job rates, exchange rates, etc. have different impacts on economic growth and we should bear in mind that whether the states are formed or not, these determinants have different consequences. There are also socio-political factors and events which have a major influence on a country's economic progress

Goods are items of measurable interest. They are further subdivided into two components which are much smaller. The first is durable goods, including cars and furniture. These are products that have three or more years of useful life. The second is non-lasting products, including fuel, food , and clothing. The retailing industry is a vital component of the economy because it provides the customer with all these goods.

Resources are help, support, or information paid out. Many are non-tangible, but the BEA also contains goods that are unable to be processed and consumed when acquired. This accounts for 45 per cent of GDP. Thank you for the Banking and Healthcare growth. In the United States most commodities are used because they are hard to export.

The investment in industry involves the purchases made by businesses to manufacture consumer products. But not all transactions are counted. When a transaction just replaces an existing item, it does not contribute to GDP, and will not be counted. Purchases must be counted in producing new consumer products.

Non-residential spending is the bulk of fixed investment. It consists primarily of company supplies, such as software, capital goods, and manufacturing equipment. The BEA bases this part from the monthly durable goods order report on shipping data. This is a good leading indicator on the economy.