economic growth

(noun)

The increase of the economic output of a country.

Related Terms

Examples of economic growth in the following topics:

  • Arguments in Favor and Opposed to Economic Growth

    • In other words, economic growth is an expansion of the economic output of a country.
    • Arguments in favor of economic growth include:
    • Portions of society have advocated the ideas of uneconomic growth and de-growth (economic contraction) in an attempt to lessen these effects of economic growth.
    • Equitable growth: it has been found that while economic growth has a positive impact on society as a whole, it is common that poor sections of society are not able to participate in economic growth.
    • Economic growth has many positive effects, but a society must not favor economic growth over solving pressing social issues such as poverty.

  • Economic Growth as a Measuring Stick

    • If inflation is calculated to be 3% between 1900 and 1901, real economic growth will equate to 2%.
    • An outline of the perspectives of economic growth over time include:
    • Classical Growth Theory: Dating back to Adam Smith and the foundation of capitalism, classical growth theory uses the production function to measure economic growth.
    • Growth Accounting: Growth accounting came into popularity after the classical model, identifying the crucial role of technology in economic growth.
    • As a result, energy growth theory economists identify a critical role of energy and resources in measuring overall economic growth.

  • Calculating Economic Growth

    • In economics, economic growth refers to the growth of potential output.
    • The cognitive skills of a population directly impact economic growth.
    • In general, economic growth is recorded and studied over the short-run and long-run.
    • The short-run variation in economic growth is called the business cycle.
    • Economists use it to distinguish between short-run variations in economic growth and long-run economic growth.

  • Is Economic Growth a Good Goal?

    • Economic growth is typically viewed as positive, but there are mixed repercussions of increased productivity within an economic system.
    • Is economic growth the appropriate objective?
    • Simply, more economic growth means that people are able to buy more of the things they like.
    • There are, however, some downsides to economic growth, which are summarized in the idea of uneconomic growth.
    • In this circumstance there is limited utilitarian value to economic growth.

  • Catch-Up: Possible, but not Certain

    • In order to assess economic growth it must be measured.
    • Some of the factors that impact economic growth include:
    • The growth of productivity is the driving force behind economic growth.
    • This has a negative effect on long-run economic growth.
    • Quality of life is a direct result of economic growth.

  • Government Activity

    • The long-run economic growth is determined by short-run economic decisions.
    • When an economy or industry experiences imbalanced in economic growth, the government can respond in order to assist in securing the market.
    • Investment: the government can stimulate economic growth by investing in the economy.
    • The government must stimulate economic growth to meet the needs of an increasing population.
    • The change in GDP is used to determine economic growth within a country.

  • Growth in the Rest of the World

    • On a global scale, economic growth is the sum of the growth of individual countries to give a worldwide total.
    • On a global scale, economic growth is the sum of the growth of individual countries to give a worldwide total.
    • Analyzing economic growth in prominent countries provides an overview of global economic growth .
    • The U.S. experienced economic recovery, but the global economic growth lost momentum.
    • Over long periods of time, small rates of growth have large economic effects.

  • Determinants of Long-Run Growth

    • Labor force participation: the amount of labor force participation and the size of economic sectors influence economic growth.
    • When the economic growth matches the growth of money supply, an economy will continue to grow and thrive.
    • However, when economic growth is not balanced, the result can include inflation and excessive growth.
    • Economic growth is the percentage rate increase in the GDP.
    • Inflation is a negative effect of economic growth that is not balanced.

  • Growth in the United States

    • Economic growth is defined as the increase in the market value of the goods and services produced by an economy over time.
    • To determine economic growth, the GDP is compared to the population, also know as the per capita income.
    • Throughout its history, the U.S. has experienced economic growth in varying degrees.
    • Industrial Revolution: a period of rapid economic growth.
    • 20th century growth: most economic growth in the 20th century was due to reduced inputs of labor, materials, energy, and land per unit of economic output.

  • Long Run Growth

    • Long run growth is the increase in the market value of the goods and services produced by an economy over time.
    • In economics, economic growth or economic growth theory typically refers to growth of potential output, which is production at full employment.
    • A growth rate of 2.5% per annum leads to a doubling of the GDP within 29 years, while a growth rate of 8% per annum (an average exceeded by China between 2000 and 2010) leads to a doubling of GDP within 10 years.
    • Therefore, a small difference in economic growth rates between countries can result in very different standards of living for their populations if this small difference continues for many years.
    • Growth in GDP can be significant, especially when annual growth rates are fairly consistent.