Reference no: EM131294695

We measure long-term economic growth of a country based on it's GDP (Gross Domestic Product). I feel like the key determinants of long-run economic growth consists of growth in education, inflation, and investment in capital. I feel that saving can lead to only short term economic growth but still has an important role in economic growth as well as an increase in productivity. As education becomes more vital and grows within a country, this benefits the country on a broader scale enabling the country to grow on an economic scale. Economic growth and productivity go hand in hand being that the more productivity increases the more the economy can grow. Productivity is what is being put in and the growth of the economy is basically the outcome of productivity. The major source of growth in labor productivity would be physical capital. The more tools available the quicker and more efficient can products be made.