Question

what are the causes of economy?
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Answer 1

Answer:

Factors that Cause Recessions. High interest rates are a cause of recession because they limit liquidity, or the amount of money available to invest. Another factor is increased inflation. Inflation refers to a general rise in the prices of goods and services over a period of time.

explanation:

• Natural Resources. The discovery of more natural resources like oil, or mineral deposits may boost economic growth as this shifts or increases the country's Production Possibility Curve. ...

• Physical Capital or Infrastructure. ...

• Population or Labor. ...

• Human Capital. ...

• Technology. ...

• Law.