ATAR Notes: Forum

VCE Stuff => VCE Business Studies => VCE Subjects + Help => VCE Economics => Topic started by: hdxx on May 13, 2018, 01:18:54 pm

Title: Link between efficiency and growth
Post by: hdxx on May 13, 2018, 01:18:54 pm
What is the link between efficiency and growth??
Title: Re: Link between efficiency and growth
Post by: DoctorTwo on May 14, 2018, 07:23:07 pm
If firms are more efficient, they are earning more profit and being more competitive, so they can spend more on wages and business expansion, which will grow the economy. Also, consumers get better prices, so they have more disposable income and can inject more finance into the company.