Question

Please define and discuss Economic Growth with examples

Answer 1

Economic Growth can be defined as a growth which is usually evident in the developing nations. An economy grows when there is a decrease in the rate of unemployment. The high quality of the components of production plays a significant role in the growth of an economy. When there is a higher rate of production of products and services, when the labours and employee rates are high, when there are highly skilled and trained entrepreneurs and mainly when a nation experiences a better technological growth, then it is said to be the growth of an economy. There are many factors which affect an economy to grow. The best example of economic growth would be a rise in per individual GDP (gross domestic product). Another example to determine the growth of a nation would be when it has an improved human resource which includes a better labour force (both skilled and unskilled). When there are a huge number of labours, the production of commodities increases. And when these skilled labours work together, they tend to give a better quality outcome which would directly lead to more and more demand for those commodities. Hence, all of this would lead to an economic growth.