The goal of Economic Growth is a positive change in the level of production of goods and services. Economic growth and improved standard of living goes together because you produce more so you have more income which makes the standard of living go up. The standard of living goes up when economic growth outpaces the population growth.
It is measured by Real GDP per capita. Real GDP takes out inflation.
Economic growth occurs when there is an increase in the labor force and increases in productivity. The downside is that GDP does capture all economic output like tips, under table work, illegal goods,prostitution and housework. Growth can also lead to more pollution, depletion of natural resources,traffic congestion noise and work related stress.
Dr. Stephanie Powers, "Goals"(Lecture,Donald School of Business, Red Deer AB, Winter 2012)
The goal of Economic Growth is a positive change in the level of production of goods and services. Economic growth and improved standard of living goes together because you produce more so you have more income which makes the standard of living go up. The standard of living goes up when economic growth outpaces the population growth.
It is measured by Real GDP per capita. Real GDP takes out inflation.
Economic growth occurs when there is an increase in the labor force and increases in productivity. The downside is that GDP does capture all economic output like tips, under table work, illegal goods,prostitution and housework. Growth can also lead to more pollution, depletion of natural resources,traffic congestion noise and work related stress.
Dr. Stephanie Powers, "Goals"(Lecture,Donald School of Business, Red Deer AB, Winter 2012)