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Economic growth is measured by an increase in the production of goods and services from "summary" of Economics for Beginners by Andy Prentice,Lara Bryan
Economic growth is essentially a measure of how well an economy is doing. When we talk about economic growth, we are looking at the overall increase in the production of goods and services within a country. This can be measured in a number of different ways, including looking at the Gross Domestic Product (GDP) of a country. An increase in the production of goods and services means that more things are being made and provided to consumers. This is a positive sign for the economy, as it indicates that businesses are doing well and there is a demand for their products. When businesses are thriving, they are more likely to hire more workers, which can help to reduce unemployment rates. Furthermore, when there is an increase in the production of goods and services, it can lead to higher incomes for individuals. This is because more people are able to find jobs and earn a living, which can help to improve their overall quality of life. Higher incomes can also lead to increased spending, which can further stimulate the economy and drive economic growth.- Measuring economic growth by looking at the increase in the production of goods and services is an important way to gauge the health of an economy. It provides valuable insights into how well businesses are performing, how many people are employed, and how much money is circulating within the economy. By focusing on this key indicator, policymakers and economists can make informed decisions about how to support and sustain economic growth over time.
