Economic Growth
Definition
Economic growth refers to an increase in an economy's production capacity over time, resulting in higher levels of real GDP (gross domestic product). It is typically measured by the annual percentage change in real GDP.
Related terms
Productivity: The efficiency with which inputs (such as labor and capital) are used in the production process.
Investment: The purchase of new capital goods (e.g., machinery, equipment) or additions to inventories with the aim of increasing future production.
Human Capital: The knowledge, skills, education, and training possessed by individuals that contribute to their productivity.
"Economic Growth" appears in:
Subjects (9)
Study guides (7)
AP Macroeconomics - 1.2 Opportunity Cost and the Production Possibilities Curve (PPC)
AP Macroeconomics - 2.2 Limitations of GDP
AP Macroeconomics - 2.7 Business Cycles
AP Macroeconomics - 3.4 Long-Run Aggregate Supply (LRAS)
AP Macroeconomics - 5.5 Crowding Out
AP Macroeconomics - 5.6 Economic Growth
AP Macroeconomics - 5.7 Public Policy and Economic Growth
Additional resources (2)
Practice Questions (13)
How can you see economic growth on the PPC?
Which of the following is a characteristic of economic growth?
What is the long-term impact of prolonged crowding out on economic growth?
What is the primary measure used to gauge economic growth?
What is the significance of technology in economic growth?
What do technology, physical capital, human capital, and natural resources have in common in terms of economic growth?
Which of the following factors is not directly related to productivity and economic growth?
What is the significance of saving in relation to economic growth?
How do technological advancements contribute to economic growth?
Which factor plays a crucial role in improving productivity and economic growth in the long run?
Which type of public policy can contribute to economic growth by improving human capital?
How does an increase in infrastructure spending impact economic growth?
How does increasing employment contribute to economic growth?
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