Question

The board of directors at Millco announces plans to build six new regional factories in the United States that will produce capital and consumer goods for the entire western hemisphere. Explain the impact on economic growth. (4 points)

Answer 1

The factories will increase growth in economic because there will be more jobs that will be provided.

Step-by-step explanation:

Based on the scenario, the factories will have an increase economic growth because more jobs will be provided, because when the directors at the company decide to build more factory this will be increase in the number of job opportunities thereby increasing the economic growth. provided jobs will lead to higher income for the workers, and when the workers have wages which are higher, demand for the products which will increase which will make increase in the aggregate supply.

Answer 2

There will be an an increase in economic growth due to increased employment opportunities.

Step-by-step explanation:

When an economy increases its capacity to produce goods and services over a specific period, this is called Economic Growth.

If the board of directors at Millco builds these new factories, there will be a boost in the economy because more jobs will be provided. These new factories will increase the demand for labour thereby providing job opportunities for people in the entire hemisphere. This will lead to an improvement in the standard of living of people.

Also since economic growth occurs when there are increases in the production of goods and services, there would be increases in consumption of these capital and consumer goods.