Question

TIME SENSITIVE PLEASE

(a) Economic Growth and Economic Recovery refer to the same phenomenon. Agree/Disagree. Provide an explanation( 2-3 LINES ONLY)

(b) Define Economic Growth. According to neoclassical economists, which variable plays a significant role in determining Economic Growth? Give a brief explanation. What happens in the market for loanable funds when Savers change their savings? (4-5 LINES ONLY) (GRAPH IS MANDATORY)

Answer 1

Ans

1 economic growth just means improvement in gdp. Development means increase in gdp along with improvement in socio economic indicators like life expectancy education attainment etc. Growth can happen even when goods are produced for war which leads to human miseries

2 Growth means sustained increase in gdp of a nation over a long period of time.according to neoclassical capital per worker (in other terms saving per worker) plays significant role.

When savers increase savings supply of saving shifts rightwards from s to S1. Similarly when savers decrease savings supply of savings shifts leftwards from s to so.