Economic growth due to labor force expansion or capital investments will result in A rightward shift in long-run aggregate supply.
In general, economic processes occur as a results of increases within the production of products and services. Increased consumer spending, increased international trade, and businesses that increase their investment in capital spending can all impact the amount of production of products and services in an economy.
Because savings and investment increase the stock of capital, more investment in capital results in more economic processes. the quantity and quality of labor: As long as the capital per worker doesn't decrease, more labor results in more production.
A peak occurs when expansion reaches its climax. With an outsized sum of demand for goods, inflation occurs where costs begin to extend. Human capital affects economic processes and might help to develop an economy by expanding the knowledge and skills of its people.
Broadly speaking, there are two main sources of economic growth: growth within the size of the capital investments workforce and growth within the productivity (output per hour worked) of that workforce.
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