Question

When production of goods and services rises what does it means in terms of economic growth? please explain thoroughly

Answer 1

Economic growth is an increase in the output over a given period of goods and services. To be more precise, the calculation will exclude the inflationary impacts.

Economic growth is creating more income for businesses. As a consequence stock prices are rising. This gives companies the money to spend and recruit more employees. When more jobs are generated, revenues increase. Consumers have more resources to buy additional goods and services. Acquisitions are driving higher economic growth. It is for this reason that every country needs strong economic growth. It makes economic growth the economic variable most watched for.

If a country isn't blessed with the development factors, it needs to find other ways to stimulate growth. Governments want growth to increase, because it raises tax revenue. Growth helps employers to recruit employees, raising their profits. When people feel secure by re-electing them they reward elected leaders. With expansive fiscal policy, the Government stimulates production. It either spends more, cuts taxes, or both. Since politicians want to be re-elected, they're using ambitious monetary policies to improve the economy.

Economic growth is a surge in an economy's production of goods and services.
Capital goods, labor force, technology and human capital improvements will all lead to economic development.
Economic growth is generally calculated using figures such as GDP in terms of the increase in aggregated market value of additional products and services produced.