Growing economies provide the means for people to enjoy higher living standards and for more of us to find work. However what is economic growth and the best way for a country to accomplish it?
Defining Economic Growth
Economic growth is best defined as a long-term expansion of the productive potential of the economy. Sustained economic growth is supposed to lead higher real living standards and rising employment. Short term growth is measured by the annual % change in real GDP.
Growth and the Production Possibility Frontier
An increase in long run aggregate supply is illustrated by an outward shift in the PPF.
Posted on Wednesday, 16th of May, 2012.
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