The factors that most affect economic growth include:
1. Interest Rate: The interest rate set by the central bank influences borrowing costs for businesses and individuals. Lower interest rates can stimulate borrowing, investment, and spending, thereby promoting economic growth.
2. Employment Rate: A high employment rate indicates a healthy economy with more people working and contributing to the GDP. Low unemployment rates suggest that more people have stable incomes, leading to increased consumer spending and overall economic growth.
3. Inflation Rate: Inflation refers to the rate at which prices for goods and services rise. Moderate inflation can be a sign of a growing economy, but high inflation can erode purchasing power and reduce overall economic growth.
4. College Graduation Rate: A higher college graduation rate can lead to a more skilled and productive workforce, driving innovation, productivity, and economic growth.
By focusing on these factors, policymakers and economists can analyze and implement strategies to support economic growth and stability.
