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Economic growth induced by the increases of investment and demand

Author

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  • Krouglov, Alexei

Abstract

Presented here is a simplified mathematical model exploring dynamic factors of the economic growth. In particular, it examines two factors affecting the economic growth – first factor is an increase of the rates of product investment and another factor is an increase of the rates of product demand. Economic growth is presented through an increase of the rates of monetary demand. If the rates of monetary demand evolve there is an economic growth. If the rates of monetary demand decrease there is an economic decline. Both an increase of the product investment and increase of the product demand have similar effects with regard to equilibrium between the product supply and product demand. For investment and demand increases the model explores scenarios of constant-rate and constant-accelerated product amendments.

Suggested Citation

  • Krouglov, Alexei, 2021. "Economic growth induced by the increases of investment and demand," MPRA Paper 110314, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:110314
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    File URL: https://mpra.ub.uni-muenchen.de/110314/1/MPRA_paper_110314.pdf
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    References listed on IDEAS

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    1. Krouglov, Alexei, 2016. "Mathematical model of the economic trend," MPRA Paper 74919, University Library of Munich, Germany.
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    More about this item

    Keywords

    economic growth; investment increase; demand increase;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O42 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Monetary Growth Models

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