Question

There are five important sources of economic growth; name & briefly discuss the 5.

Answer 1

The five important sources of growth can be:

1. Savings of the individuals: earlier models such as Harrod Domar, allow gave savings rate some emphasis in sustaining economic growth.

2. Technological progress: it can explain the sustained increase in economics growth. We have solow model which explains growth by this.

3. Population: increment in population also explains growth.

4. Human capital. Models such as AK explain the importance of human capital. They can explain growth to a greater extent.

5. Imperfect competition and increainin knowledge: David Romer uses these parameters to explain economic growth.