whether or not an increase in the output of capital goods reduce output of consumer goods?
Answers
Answer:
Economic growth has two meanings:
Firstly, and most commonly, growth is defined as an increase in the output that an economy produces over a period of time, the minimum being two consecutive quarters.
The second meaning of economic growth is an increase in what an economy can produce if it is using all its scarce resources. An increase in an economy’s productive potential can be shown by an outward shift in the economy’s production possibility frontier (PPF).
Answer:
Capital goods are man-made instruments of production and increase the productive capacity of the economy. Therefore, accumulation of capital goods every year greatly increases the national product or income. Capital accumulation is necessary to provide people with tools and implements of production
Explanation: