Final answer:
Agriculture contributes to Belize's GDP through exports and employment. Factors of production impacted by GDP growth lead to economic efficiency and technological innovation. Long-term GDP is measured by adjusting for population changes and price levels.
Step-by-step explanation:
How Agriculture Contributes to the GDP of Belize
Agriculture is a vital component of the economy of Belize. It contributes to the country's Gross Domestic Product (GDP) significantly through production and exportation of goods such as sugar, bananas, and citrus fruits. Moreover, the agricultural sector provides employment opportunities, which is an essential factor for economic growth.
Factors of Production and GDP Growth
The factors of production include land, labor, capital, and entrepreneurship. When there is a growth in GDP, it often means that these factors are being utilized more efficiently, potentially leading to advancements in technology and productivity. An essential element for economic growth is technological innovation because it can lead to increased productivity and better utilization of all factors of production.
Measuring Long-term GDP
Long-term GDP must be adjusted for changes in population to accurately reflect economic growth per capita. Long-term GDP is usually measured in terms of real GDP, which accounts for changes in the price level, adjusting for inflation and allowing for a more accurate comparison over time.