Economic Growth Model

An economic growth model is a framework used to understand how a country increases its production of goods and services over time. It looks at factors like capital (investments in buildings and machinery), labor (the workforce), and technology (innovation and improvements) that drive this growth. By analyzing these elements, economists can predict potential growth rates and develop policies to encourage economic expansion. Essentially, these models help explain why some economies thrive while others stagnate, providing insights for governments and businesses to foster a more productive economic environment.