Question

Explain why productivity growth, saving, and new technologies are crucial for maintaining economic growth

Short answer

Productivity growth, saving, and new technologies are crucial for maintaining economic growth.

Step-by-step solution

Introduction

Productivity growth means the rate at which various variables of creation consolidate and deliver labour and products in a country. It is a significant determinant of the way of life in a country.

Explanation part (1)

Productivity growth means - Lower cost per unit of products created, Further developed intensity and execution in the worldwide market, Expanded benefits, Expanded economic growth. An ascent in the reserve funds in a country suggests an expansion in investments.

Explanation part (2)

Organizations utilize this speculation to grow their creation and size of plants, which thus prompts a further expansion in yield in a country. Hence, an ever-increasing number of reserve funds will prompt higher pay and result and consequently, increment economic growth in a nation. Savings then again, are the pay saved by families and Firms for future utilization or venture.

Explanation part (3)

New innovation alludes to advancement during the time spent creating and improving. An improvement in the innovation of creation prompts an expansion underway of products and administration in a country. The higher the economic result, the more will be the economic growth of the country.