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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.
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