Essay : What are the factors that contribute to economic growth?

Present a thorough analysis of economic growth. What are the factors that contribute to economic growth? Provide your perspective as to what our society can do to enhance economic growth.

SAMPLE SOLUTION

Economic growth refers to the absolute or percentage change in the value of markets goods and services produced in an economy between two periods. The increase in the market value of goods is adjusted for the effect of inflation; hence, the change is measured in real terms rather than nominal terms (International Monetary Fund, 2012). Economic growth is expressed in terms increase in real gross domestic product (GDP). Intensive economic growth refers to an increase in GDP or economic growth arising from efficient use of production inputs such as labor while extensive GDP growth denotes an increase in GDP arising from increased amount of production inputs.             Economic growth is associated with ripple effects. Expanding economy leads to increased business profits, leading to growth in stock prices. Companies are able to increase their investments creating more job opportunities…