Why do economies grow?

Why do economies grow?

Introduction

Economic growth can be defined as the increasing capability of the country or any specific market to satisfy the wants of the members of the society. It usually initiates with an increase in the level of productivity, which ultimately leads to a decrease in the costs of inputs such as land, labor and capital and hence ultimately increasing the demand for various goods and services. It can also be explained as an increase in the country's national output and national income. (i.e. GDP) and results from an increase in the country's aggregate supply or aggregate ...