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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