Answer to Question #246011 in Microeconomics for Joy margarette

Question

suppose Americans decide to save more of their incomes. If banks lend this extra saving to business, which use the funds o build new factories ,how might this lead to faster growth the higher productivity?Is society getting a free lunch?

Answer 1

Efficiency gains enable businesses to prepare more results for the same amount of input, earn more revenues, and, as a result, start generating better Gross Domestic Product.

Yield refers to the quantity of work that can be done with the same number of resources. Greater output per worker, in a larger sense, boosts a country's economic power by accelerating fiscal progress and meeting more individual demands with the same materials.