how does the economy of the world grow?
483704
The power of money is not, what one is able to buy from it at one point of time, but how many times the same note of currency can buy different products over a period of time.\n\nFor example, when one buys something for $10, it is the expenditure of the buyer. However, for the seller this is his revenue. He may buy another product, say from his supplier, and pay him $10. And so the cycle goes on and on. The important thing here to note is that one currency bill of $10 is able to purchase goods more than $10. \n\nIn economics, this is called the 'multiplier effect'. For example, if a $10 piece of currency is rotated 5 times in a year (i.e. multiple of 5), it can buy a total of $50 worth of goods annually. The more the multiple (i.e. more times the same currency is rotated) more products and services will be bought and sold. As a result the United States economy will grow. Ditto for the world economy.\n\nPlease note that this explanation is very naive and simple.  There may be many factors for the world economy to grow. One will have to study advanced economics to know the exact effects on the world economy as a result of expansion (or shrinkage) of government budgets (also called fiscal policy), rise and fall in interest rates by the FED (called monetary policy) etc.\n\nHope one finds this information useful.
20909
immigration has been causing the population to increase.  this has stimulated the economy, causing prosperity to many.
155269
economic development -  the analysis of the economic progress of nations.
321816
try the World Economic Outlook Database sponsored by the International Monetary Fund.  They show annual growth rates in GDP (Gross Domestic Product) for a lot of countries, including developing countries.  You can also look at regional aggregates
738970
Immigration of people to the planet causes world population to rise.  Emigration of people leaving the planet causes world population to fall.\n\nDuh!
1070776
The government can control the economy, providing stability and a sense of certainty that would lead to a rise in economic activity. The economy can then sustain a steady growth
311624
No, they aren't...but their economy continues to grow at an alarming rate.  They are attaining wealth and power rather too quickly for the likings of the United States.
1132068
Honestly? probably never again. World consumption far outpaces production (Thanks to China) coupled with production troubles (political and economic instability in producing countries) mean we will be paying higher prices. (Don't forget inflation too).
476005
Typically, smaller economies grow faster than developed economies as measured by GDP per capita.  The exchange rate, or value of their currency is affected by a lot of different factors including debt, barriers to trade, GDP, trade balance, etc.  All else being equal, if per capita GDP increases, the value of the currency should also increase.
82350
i think china already did, the question is rather where is the limit of the rise, some say the chinese economy will pass the us economy in 25 years
473163
Well, GDP is Gross Domestic Product meaning the worth of the nation in proportion to the number of citizens in the nation. The economy has a direct relation to the GDP because if the economy does well and continues to grow (not necessarily inflation) then the country will continually to get more money meaning that if it were spread evenly throughout the population, each person would have more and more. I hope this helps you. It's kind of hard to explain.
584265
very simple... money\n\nit makes the world go round
1095836
Probably not the exact answer, but I would guess that GDP would increase slightly.  One method of calculation is spending, which would appear to go up, but these additional transactions would decline because some of the advantages (no taxes) would disappear so the demand for these types of transactions would go down.  But the industry as a whole would survive to a certain extent as a regulated industry.
185659
In most econ equations productivity is represented by the variable "A" and it is the only real way to grow an economy quickly. Productivity usually comes from technological advances like PCs. Basically, productivity increases when the same number of people can do more work or increase GDP per capita.
310712
China has the fastest growing economy in the world. India probably second. The USA economy is stable and businesses here do business with China because the labor is cheaper. There are other countries, however, who are trying to woo China to buy airplanes, trains, and other goods from them. Same in the USA, we are trying to sell China airplanes, trains, and any other product they might want to buy.
623808
Nature will take care of that problem. Once the Earth's resources are depleted and human population starts to wane then economies will crumble (a healthy economy is built around a growing population), famine and disease will be rampant. At least 80% of the human population will perish.\n\nNow aren't you glad you asked.
564691
science (i.e. technology) causes economic growth