Economic growth it is measured by what
Economic growth is typically measured by the increase in a country's gross domestic product (GDP) over a specific period of time, usually expressed as a percentage. GDP is the total value of all goods and services produced within a country's borders in a given year. Other indicators that are commonly used to measure economic growth include indicators such as employment rates, inflation rates, and productivity levels.
Economic growth is typically measured by the increase in a country's Gross Domestic Product (GDP) over a certain period of time. GDP is the total value of all finished goods and services produced within a country's borders during a specific time period, usually a year. There are three commonly used approaches to measure GDP:
1. Output approach: This method calculates GDP by summing up the value of all goods and services produced in different sectors of the economy, such as agriculture, manufacturing, and services.
2. Expenditure approach: This approach measures GDP by summing up the total amount of spending on goods and services by households, businesses, government, and net exports (exports minus imports).
3. Income approach: This method estimates GDP by summing up the total income earned by individuals and businesses in the form of wages, profits, rents, and interest.
By comparing the GDP of a country from one period to another, economists can determine if the economy is growing or contracting. Positive economic growth indicates an increase in the overall level of economic activity, while negative growth indicates a decline.