ECON 1020 Lecture Notes - Lecture 35: Demand Factor, Aggregate Demand, Productive Efficiency

• School: University of Manitoba
• Department: Economics
• Course: ECON 1020
• Professor: Ryan A.Compton

Document Summary

Number of people and skill set/education of that population: increase in the supply (or stock) of capital goods. Supply factors: an increase in the availability of a resource, an improvement in its quality, or an expansion of technological knowledge that makes it possible for an economy to produce a greater output of goods and services. Supply factors are very similar to the factors of production (land, labour, capital, and technology) These supply factors enable the economy to expand. To achieve the higher production potential created by the supply factors, households and businesses either domestically or abroad must purchase the economy s expanding output of goods and services. Economic growth requires increases in total spending to realize the output gains made available by increased production capacity. Efficiency factor: efficiency factor: the capacity of an economy to combine resources effectively to achieve growth of real output that the supply factors make possible.