Question

Give reasons and Explain the following.
Indicators of economic growth are PCI, PCC, GDP.

Answer 1

Following indicators measure the economic growth.

1. Increase in Gross Domestic Product (GDP)
2. Increase in Per Capita Income (PCI)
3. Increase in Per Capita Consumption (PCC)

1. Increase in Gross Domestic Product (GDP): Economic growth implies increased output of goods and services. Here it is necessary to mention that the increase in GDP must be steady and long term.

2. Increase in Per Capita Income (PCI): The PCI is obtained by dividing the national income of the country by its total population. A rise in Per Capita income is possible when the growth of national income is more than the growth of population.

3. Increase in Per Capita Consumption (PCC) : Per capita consumption of a country is obtained by dividing the total private consumption expenditure by total population.