Economic Growth Assignment Example | Topics and Well Written Essays - 1000 words

stinting egression - designation ExampleThere are various driving forces contributing to an economic growth, namely, improvement in engineering and productivity, increases in the levels of economic activity, efficient Human resource management, greater access to capital resources, etc. Economic growth is essential because it drives the country towards improved standards of living as well as enables it to be in the lead in todays competitive environment in the international market. (Term, Economic Growth from Investopedia)Aggregate require is defined by the demand of goods and services that allow remain constant at any price level of such goods and services. The Aggregate Supply-Aggregate Demand Model is a macroeconomic vex. This model is basically used to facilitate the analysis and evaluation of the factors that have an impact on the level of substantive Gross Domestic Product (i.e. GDP adjusted for inflation) and the level of inflation. This model works on the measuring of o utput of an entire economy also known as the national production of a country. down the stairs is a pictorial representation of this modelThe Real GDP as shown in the above visualise represents the quantity of output of the economy. The equilibrium of the Real GDP is reached at the point where the Aggregate Supply (AS) diverge interacts with the Aggregate Demand (AD) Curve. Furthermore, this equilibrium also determines the national inflation rate. The negative slope of the Aggregate Demand (AD) Curve is as a result of the fact that the purchasing power of a buyer will increase with the reduction in prices at any given level of nominal income. While canvass the Aggregate Supply (AS) Curve it can be identified that initially it is nearly flat and is thence followed by a sharp vertical turn. The flat curve is an indication of the absence of inflation in that period whereas in the latter portion of the curve the case is vice-versa.The