Economic growth induced by the increases of investment and demand

Alexei Krouglov ()

MPRA Paper from University Library of Munich, Germany

Abstract: Presented here is a simplified mathematical model exploring dynamic factors of the economic growth. In particular, it examines two factors affecting the economic growth – first factor is an increase of the rates of product investment and another factor is an increase of the rates of product demand. Economic growth is presented through an increase of the rates of monetary demand. If the rates of monetary demand evolve there is an economic growth. If the rates of monetary demand decrease there is an economic decline. Both an increase of the product investment and increase of the product demand have similar effects with regard to equilibrium between the product supply and product demand. For investment and demand increases the model explores scenarios of constant-rate and constant-accelerated product amendments.

Keywords: economic growth; investment increase; demand increase (search for similar items in EconPapers)
JEL-codes: C61 E32 O42 (search for similar items in EconPapers)
Date: 2021-10-21
New Economics Papers: this item is included in nep-cwa and nep-mac
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:110314

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