Saturday, August 9, 2014

What is Economic growth?



Definition

Economic growth is a positive change in the output, or production, of a country or an economy. It is the increase in the market value of all goods and services produced by an economy over time and a long-term expansion of a country’s productive potential.

Economic growth increases in real GDP. It measures to a numerical value. Therefore, economic growth can be calculated as a percentage increase in the Gross Domestic Product (GDP) of a given economy. This is done by finding out the previous year’s GDP and finding the ratio between the current and the previous GDP.

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