Economic Growth

Building up the capital stock of the economy is a very important part of long-term economic development. This chapter focuses on capital accumulation in the economy, and the amount of capital that is available at any given time. It also explores the results of saving and investment decisions taken in the past, which are affected by depreciation. A basic equation of the stock of capital between today and the future is shown. There are six main types of capital—business, infrastructure, human, intellectual, nature, and social capital—and all of them are long-lasting.

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