GENERAL KNOWLEDGE

Detailed explanation-1: -An economy grows when it has the capacity to produce more. Production is based on how much capital, labor, natural resources, and technology it has to produce. Policies that encourage the accumulation of any of these leads to economic growth.

Detailed explanation-2: -Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth.

Detailed explanation-3: -Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal or real terms, the latter of which is adjusted for inflation.

Detailed explanation-4: -Long run economic growth is an increase in the productive capacity of the economy due to an increase in the long-run aggregate supply. It means that the potential or trend economic growth rate is higher.