Technology drives longrun economic growth from "summary" of Principles of Macroeconomics by N. Gregory Mankiw
Technological progress is a key driver of long-run economic growth. As new technologies are developed, they enable firms to produce more output with the same amount of inputs. This increase in productivity leads to higher economic growth rates in the long run. One way that technology drives economic growth is through the process of creative destruction. When new technologies are introduced, they often make older technologies obsolete. This can lead to disruptions in certain industries, but it also creates opportunities for new industries to emerge. In the long run, this process of creative destruction leads to higher levels of productivity and economic growth. Another way that technology drives economic growth is by increasing the rate of innovation. As new technologies are developed, they create new opportunities for firms to innovate and improve their products and processes. This leads to higher levels of productivity and economic growth in the long run. Furthermore, technology can also lead to increases in human capital. As new technologies are introduced, workers often need to acquire new skills in order to operate and maintain these technologies. This leads to higher levels of education and training, which can further increase productivity and economic growth in the long run.- Technology plays a crucial role in driving long-run economic growth. By enabling firms to produce more output with the same amount of inputs, encouraging innovation, and increasing human capital, technology paves the way for higher levels of productivity and economic growth in the long run.
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