Prosperity Delusion
Economic growth in simple language is an increase in the amount of
goods and services produced per head of the population over a specific
time. It is an increase in i) production of goods and services and ii) capital
goods, labor force, technology, and human capital all contribute to
economic growth1. The growth rate is the rate at which the Gross Domestic
Product (GDP) is increasing. Changes in the available amount of
resources, particularly the change in labor and capital in the economy
cause to change the GDP. Labor and capital are the primary resources. In
addition to this, increase in the efficiency of factors of production causes to
increase in GDP (Dornbush, et al., 2002). In absolute term, the percentage
change of (GDP) in current year over the previous year is termed as
economic growth rate.
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