Macroeconomics Research Paper Essay Example
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 started to rise and accelerate around the year 1820 and it has sustained a steady rate of increase over the last two centuries (Beck, 2000). One of the main challenges for growth theory is to understand this transition from stagnation to growth and in particular to identify the main factor that triggered the take-off
The paper will highlight the economic growth and the stimulating factors that give rise to the revenue of the country and improve the standard of living of the people. It will also highlight the effects of the monetary regimes on economic development in different parts of the world. The growth of the economy brings prosperity to the country and enhances the economy will inclining the GDP of the country. The economic growth can be stimulated through various factors that include the role of financial intermediaries, role of government ownership of the banks and the social factors. The role of all these factors is crucial in the economic development of the country.
Discussion
Economic growth means an increase in economic activity compared to an earlier point for example previous year. The most commonly used indicator is the percentage increase in the gross national product (GNP) or gross domestic product (GDP) per
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 started to rise and accelerate around the year 1820 and it has sustained a steady rate of increase over the last two centuries (Beck, 2000). One of the main challenges for growth theory is to understand this transition from stagnation to growth and in particular to identify the main factor that triggered the take-off
The paper will highlight the economic growth and the stimulating factors that give rise to the revenue of the country and improve the standard of living of the people. It will also highlight the effects of the monetary regimes on economic development in different parts of the world. The growth of the economy brings prosperity to the country and enhances the economy will inclining the GDP of the country. The economic growth can be stimulated through various factors that include the role of financial intermediaries, role of government ownership of the banks and the social factors. The role of all these factors is crucial in the economic development of the country.
Discussion
Economic growth means an increase in economic activity compared to an earlier point for example previous year. The most commonly used indicator is the percentage increase in the gross national product (GNP) or gross domestic product (GDP) per