Macroeconomics Essay Example | Topics and Well Written Essays - 250 words - 4

Macro economics - bear witness Exampleference to the studies conducted by (Krugman and Wells 254) the differences noted above in terms of ontogeny of the livings standards can be attributed to differences in the level of separately countrys physical ceiling which is mainly determined by a countrys level of savings and investment. Secondly, the differences can be attributed to differences in education levels of each country, the technological progress, government policies and the level of political stability that is experienced in each country.Physical capital such as office space and machineries influence long-run economic growth of aggregate fruit per capita by increasing the productivity of a worker. Human capital also influence long-run economic growth of aggregate output per capita since a well educated and highly trained employee will stretch more competitive advantage and increase the value of labor. Thirdly technology influence long-run economic growth of aggregate outp ut per capita by increasing efficiency and effectiveness of production whilst reducing the direct cost. Lastly, according to (Krugman and Wells 251) inseparable resources do not necessarily influence the long-run economic growth of aggregate output per capita in todays World as it did in the past centuries. However, it is of amount to note that natural resources have the potential of increasing a countrys foreign supplant income thus influence the long run economic growth of a country that is endowed with natural resources such as mineral deposit and abundant