Question

What do you mean by economic growth

Answer 1

Dear Student

Economic growth can be defined as an increase in the capacity of an economy to produce goods and services . It is measured at certain time intervals . Growth is usually calculated in real terms i.e. inflation-adjusted terms to avoid the distorting effect of inflation on prices . Conventionally it is measured as a percentage rate of increase in real Gross Domestic Product (GDP) , usually in per capita terms .

Regards .