Question

What are the sources of New Zealand long-run economic growth; specify the most important factors that support this economy.

Answer 1

The sources of New Zealand long run economic growth are: labour force, capital and productivity.

The most important factors are labour and capital, because quality labour can contribute to both output and investment.And without capital production cannot be possible for growth.

New zealand's labour is effective in quantity as well as in quality. Abundant labour is available due to high population and quality labour is available due to educated population.

Investment is also appropriate in numbers and to suitable sectors of the economy.