Peter Drucker Approach: Economic Growth and Transnational Economy of Kingdom of Saudi Arabia

Abstract

Financial system and technological progress as a productive investments concern about the relationship between the expected real interest rates and outputs because investments have monetary transmission mechanism on the productivity and labor-supply which have effects on outputs, inflations, and the interest rates. But the dynamic general equilibrium model of the real business cycle has the impulse response momentum in the macroeconomic variables including investments, employments, real wages, interest rates, consumptions, the GDP deflators, and GDP. The productive investments with the efficient utilization of capital stock effectively influence the direction of real wages, marginal cost and price formation so the business enterprises and welfare system of the Saudi-Arabia kingdom optimize the real business cycle of the economy with advancements in productivity levels, innovation and technology, and the efficient capital markets.