Factors that affect long-run economic growth are the determinants of how much
output an economy can produce with its available resources. Some of these factors
are:
- Physical capital: The stock of machines, equipment, buildings, and infrastructure
that are used to produce goods and services. Physical capital increases
productivity and efficiency of workers and firms. For example, a factory with
modern machinery can produce more output than a factory with outdated machinery.
- Human capital: The skills, knowledge, and health of the labor force. Human
capital can be improved through education, training, and health care. Human capital
also increases productivity and innovation. For example, a worker with a college
degree can perform more complex tasks than a worker with only a high school
diploma.
- Natural resources: The land, water, minerals, and energy sources that are
available for production. Natural resources can be renewable or non-renewable.
Natural resources provide inputs and raw materials for production. For example, a
country with abundant oil reserves can export oil and earn foreign exchange.
- Technology: The application of scientific knowledge and methods to improve
production processes and create new products. Technology can enhance physical
capital, human capital, and natural resources. Technology also fosters innovation
and entrepreneurship. For example, a firm that develops a new software can increase
its market share and profits.
- Institutions: The formal and informal rules, laws, norms, and organizations that
govern economic activity and interactions. Institutions can affect incentives,
property rights, contracts, markets, trade, and governance. Institutions can
promote or hinder economic growth depending on their quality and effectiveness. For
example, a country with strong property rights can attract more foreign investment
than a country with weak property rights.
MONETARY
- bond buying
- lowered interest rates
FISCAL
Telework was also associated with reductions in workplace square footage and
relocation: the share of establishments that increased telework was larger among
establishments that reduced square footage or relocated during the pandemic. We
find that, compared with high-paying establishments within the same industry, low-
paying establishments had a smaller share of jobs that involved telework. This
shows that, besides paying less, jobs in low-paying establishments provided less
opportunity for remote work during the pandemic.
