26. Discuss the sources of economic growth in Australia and analyze government policies to achieve sustainable economic growth
Economic Growth refers to an increase in a country's productive capacity as measured by changes in real GDP (over time) (Usually a year). It allows countries to raise per capita income levels and also the standard of living through increases in real
The main sources of economic growth include increases in the quantity of resources being used for production and the increasing productivity of existing resource use.
This allows for increases in real
Other Sources of economic growth include the major components of aggregate demand, being denoted by consumption (C0, investment (I), net government spending (G) and net exports (X-M) (
* (Accounts for 60%)Consumption spending by households which adds to aggregate demand, causing production to increase
* (21%)Investment on new capital goods and technology also adds to aggregate demand and causes production to increase
* (22%)Net G Spending adds to aggregate demand causing production to increase
* (Recorded surpluses in a number of years)Net Exports (X-M) if...