Influences on the trend rate of economic growth
Investment
Investment influences the trend rate of economic growth as higher levels of investment increase AD and expenditure within the economy
In addition investment expenditure means there are more capital goods for workers to use to produce consumer goods therefore increasing the level of output in the economy
Education & Training
Education and training can increase the growth rate of the labour force in the economy
These can both increase the trend rate of growth in labour productivity in the UK therefore driving the level of economic growth
Technology
Changes in technology can reduce the costs of goods in the economy
If the costs of supplying products decreases then production possibility frontier will shift outwards
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