Suppose an economy that was roughly the size of Australia had a population of 19 million and real GDP of about 380,000 million U.S. dollars in 1998. Suppose further that in 1999 population was about 19.5 million and real GDP was about 401,500 million dollars. What are the approximate growth rates of real GDP and of real GDP per-capita?

In economics, economic growth is the increase in the production of goods and services over time. Economic growth is important because it means that the quality and quantity of goods and services increase.  Economic growth can be measured in nominal or real terms. Real terms are adjusted to remove inflation. The most common measure of economic growth is real GDP, which is the total value of everything produced in an economy, adjusted for inflation.  Economic growth can be generated by: Increasing physical capital goods and Improving technology.  Economic growth can lead to higher stock... Show more

In economics, economic growth is the increase in the production of goods and services over time. Economic growth is important because it means that the quality and quantity of goods and services increase. 

Economic growth can be measured in nominal or real terms. Real terms are adjusted to remove inflation. The most common measure of economic growth is real GDP, which is the total value of everything produced in an economy, adjusted for inflation. 

Economic growth can be generated by: Increasing physical capital goods and Improving technology. 
Economic growth can lead to higher stock prices, a rise in employment, and more capital for companies to invest in new ventures. 

The four production factors are: land, labor, capital, and entrepreneurship. 
Each of these factors determines a business's capacity to produce goods and services.

Show less