ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Human capital allows an economy to grow. When human capital increases in areas such as science, education, and management, it leads to increases in innovation, social well-being, equality, increased productivity, improved rates of participation, all of which contribute to economic growth.

Detailed explanation-2: -Human Capital Investments and Employment Growth If employment is improving, consumer spending rises, leading to increased revenue for companies and additional business investment. As a result, employment is a key indicator or metric for determining how GDP growth may perform.

Detailed explanation-3: -Business investment can affect the economy’s short-term and long-term growth. In the short term, an increase in business investment directly increases the current level of gross domestic product (GDP), because physical capital is itself produced and sold.

Detailed explanation-4: -A. By increasing investment in the capital stock (adding real buildings & equipment), the activities of labor become more productive thus generating more output per worker and raising real GDP.