Question

the government enacts regulation to institute enforceable property rights for business investment. which input in the production function changes, and what is the effect on economic growth in the country?

Answer 1

The effect on economic growth in the country is the capital stock is decreasing.

What is economic growth?

The rise or improvement in the market value of the commodities and services generated by an economy during a specific time period, adjusted for inflation, is referred to as economic growth. Traditionally, statisticians use the real GDP growth rate as a proxy for measuring economic growth. To account for inflation's distorting influence on the pricing of produced items, growth is typically expressed in real terms, or terms adjusted for inflation. Using national income accounting, economic growth is measured. It has all the benefits and disadvantages of that measure since economic growth is calculated as the annual percent change of GDP. Commonly, the GDP to population ratio is used to compare the economic growth rates of different nations (per-capita income).

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