What Are the Four Major Factors Responsible for Long-Run Economic

question 56

Essay

What are the four major factors responsible for long-run economic growth? On what does Romer's new growth theory focus?

---

Definitions:

Manufacturing Overhead Budget

An estimation of the costs that are not directly attributable to products but are necessary for the manufacturing process, including utilities, depreciation, and maintenance of equipment.

Non-Cash Charges

Expenses reported on the income statement that do not require an actual cash outflow, such as depreciation and amortization.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life.

Cash Disbursements

The outflow of cash for expenses, such as payments to creditors, operational costs, and investment activities.