Buy custom Why are some countries richer than others?
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Business
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Number of pages / Number of words: |
6 / 1477 |
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Simple things like this can bridge the gap between countries throughout the world. In the short run, if a country is to sustain economic growth aggregate demand must increase, when the economy has a spare capacity, so it can operate inside its production possibility curve. However, for an economy to continue to produce more goods and services aggregate supply must also increase, which many poorer countries struggle to do...
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However, for an economy to continue to produce more goods and services aggregate supply must also increase, which many poorer countries struggle to do. Countries also need larger inputs of capital to accommodate for this growth. The economy obeys the law of diminishing returns, meaning that each new bit of capital yields a slightly lower return than the one before...
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General points of the essay
&Quot;Ict Will Increase Still Further The Divergence Between Rich And Poor Countries&Quot;
critical assessment as to why, according to the Stability and Growth Pact, member countries of the EU should maintain deficits within 3% of their GDP.
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