Continued long-run economic growth requires that economies:

Question

Quizplus · Accepted Answer

Institutions that encourage research and development of new ideas are necessary for continued long-run economic growth. Innovation is a key driver of economic growth as it leads to new products and processes that increase productivity and efficiency. Continuing to increase investment rates can help spur short-term growth, but eventually, economies will reach their steady-state levels of capital and output. High levels of capital stock are important, but without innovation, an economy will not be able to sustain long-term growth.

Continued Long-Run Economic Growth Requires That Economies