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Macroeconomics Research Paper

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Colorado Technical University Research Paper Submitted in Partial Fulfillment of the Requirements for ECON201 Macroeconomics Colorado Springs, Colorado March 2012 Introduction The economic growth is the process by which per capita income rises over time. Growth theory attempts to model and understand the factors that are behind this process. It is a particularly challenging area of research because growth is extremely uneven in space as well as in time. Over the past millennium, world per capita income increased thirteen-fold, from $435 per person per year around the year 1000 to $5,700 nowadays. This contrasts sharply with the preceding millennia, when there was almost no advance in per capita income. Per capita income…show more content…
Another key determinant of economic growth is demographic (Dilipk, 2004). The economic growth is associated with the increase in the Gross Domestic Product (GDP) of the country. The Gross Domestic Product (GDP) is the value of all final goods and services produced within the economy in a given period of time. The GDP is usually reported with the unemployment and the inflation variables. There are various factors that greatly contribute in enhancing the economic growth in the country. According to the Keynesian approach, there have been identified the four variables that affects the economic growth. These are investment, saving, liberalization of the trading activities, movement of the capital, policy of the exchange rate and the macroeconomic stability of the economy. The investment in the human capital and the physical capital are also one of the factors that fasten the economic growth in the country. The demography is another factor that determines the growth of the economy. However, among these factors, research study has identified other factors that determines and enhance the economic growth. These are role of finance in the economic growth and the role of financial intermediaries in enhancing the economic growth. These factors greatly help in making the process of the economic growth faster. The economic growth is largely associated with the economic development of the country.
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