A circular diagram depicts the cyclical nature of growth. Various factors which add to the growth are represented as rectangles on this circle. Arrows point from one rectangle to the next, in the following order:

  1. Want a higher standard of living (points to) 2) Incentives

  2. Incentives (points to) 3) Innovation

  3. Innovation (points to) 4) New and Better techniques (and) 4) New and better products

  4. New and better techniques (points to) 7) More leisure

  5. New and better products (points to) 7) More consumption goods and services

  6. New and better techniques/products (together point to) 5) New firms are born and old firms die

  7. New firms are born and old firms die (points to) 6) New and better jobs

  8. New and better jobs (points to) 8) Higher standard of living

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