Discovering new production techniques boosts economy by increasing aggregate output.
Entrepreneurs look for ways to make things efficiently by using different materials made by other entrepreneurs. The best way to make something depends on how well it works and how much it costs. As new ways to make things are found, entrepreneurs switch between suppliers to save money. This affects how well the whole economy works. When a lot of things are made using other materials, some suppliers become really important, making a lot of sales and boosting the economy.