solved Topic 1: Factors Affecting Economic Growth There are several economic

Topic 1: Factors Affecting Economic Growth There are several economic and noneconomic factors that affect long-run economic growth of countries. Among these factors, the roles of physical capital, human capital, technology, and natural resources in influencing long-run economic growth of aggregate output per capita are widely discussed. Governments also play their roles in promoting and sustaining long-run economic growth of countries. Based on your reading of Chapter 26, other course materials, and your knowledge and experience, analyze the following questions. What factors might contribute to low or high growth rates in a country? How can sustainable long-run economic growth rate be realized? What are the roles of the government in achieving sustainable long-run economic growth?Why are resources no longer the most important indicators of economic growth disparity among countries? Which other economic and noneconomic factors do you think explain the reasons behind growth disparities among countries?What is the relationship between economic growth rate and unemployment rate? Do the discussion first then do the response posted below. Posted 1 Growth in the economic market in countries is very essential and is measured in different ways. Economic growth increases state capacity and the supply of public goods to its citizens. Sustainable long run growth and development in the economic market for most countries are influenced mostly by these four factors: human resources, physical capital, natural resources and technology. The rate of growth differs from country to country mostly because government in countries that are more developed tend to focus on these factors more than lesser developed countries (Woodruff, 2019). The government enacts policies such as monetary policies, fixing exchange rates, using the tax system, along with their purchasing power to steer private capital toward investment in sustainability technologies and businesses that would favor the whole country (Madgavkar, et. al., 2019). These policies play an active role in the achievement of the economic growth, as such, steady governance is essential. I believe raw resources are no longer the most important indicator of economic growth disparity among countries because the way they use resources differ along with other factors to consider such as government concerns, technological issue, education and population. For example, a country that is overpopulated yet does not produce many products would result in a high rate of unemployment and poor living standards. The relationship between economic growth rate and unemployment rate can be determined by measuring the outputs that encourages growth. In the long run, when the unemployment rate is high then the growth rate will be low due to lack of productivity and vice versa (Dayioglu, & Aydan, 2020). References Dayioglu, T., & Aydan, Y., (2020). Relationship between Economic Growth, Unemployment, Inflation and Current Account Balance: Theory and Case of Turkey. Intechopne. https://www.intechopen.com/chapters/73251 Posted 2 Class, Economic growth is measured in a number of ways (GDP, nominal GDP, GNP) but deciding what actually influences these measurements, and therefore causes them to grow or decrease, is a bit more complicated. Luckily, the Conference Board has indexes made up of the components they believe cover the ways to measure the economy of the past (lagging index), current economy (coincident), and what the expected economy looks like (leading index). The Conference Board is the organization that updates the US Federal Reserve on the economy, helping them make decisions on interest rates, and therefore they can be considered the leading experts on measuring economic growth. Perhaps the best index for these purposes is the Leading Economic Indicator Index (LEIs), since this is the one that measures expected growth based on 10 indicators. Some of these indicators are based on employment, like average weekly hours in manufacturing jobs and average weekly initial claims for unemployment insurance. These give us an idea of how much money is expected to be handed to consumers in the near future and how much unemployment is expected to rise, respectively. Another indicator in the index is the S&P 500 itself. This is because the stock market moves ahead of the economy and not in tandem, so it is a good leading indicator itself. Building permits issued for new residential buildings is another indicator, that tells us what the expected construction activity should be. The Conference Board claims this is usually a good sign that leads other economic production (The Conference Board, n.d.). These indicators, and the remaining ones, are excellent predictors of economic growth for the US Economy. Works Cited The Conference Board. (n.d.). Description of Components. Retrieved from The Conference Board: https://www.conference-board.org/data/bci/index.cf…