Exploring Economic Growth

Economic growth is the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year.

Economic growth is measured as the annual percent change of gross domestic product (GDP).

Growth is usually calculated in real terms to eliminate the distorting effect of inflation on the prices of goods produced.

<p>The 'rate of economic growth' refers to the geometric annual rate of growth.</p> Signup and view all the answers

<p>Using GDP to measure economic growth allows for comparisons between countries using the ratio of GDP to population (per-capita income).</p> Signup and view all the answers