Economic Growth:
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A simple definition is that it is the
percentage change in national income measured over time.
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A more complex definition is that it
is a positive change in the level of production of goods
and services by a country over a certain period
of time. Nominal growth is defined as economic growth including inflation,
while real growth is nominal growth minus
inflation. Economic growth is usually brought about by technological innovation
and positive external forces.
How do we measure it?
Economic growth
is measured in Gross Domestic Product (GDP). This shows the total value of
goods and services produced by an economy in a given time period, for instance
a year. Demand and supply of goods and services in country is one of the main
contributing factors that influence growth of GDP.
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