Economic Growth

Economic growth
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GDP real growth rates, 1990–1998 and 1990–2006, in selected countries.

Rate of change of Gross domestic product, world and OECD, since 1961

Economic growth caused the production-possibility frontier to shift outward.
Economic growth is the increase in the amount of the goods and services produced by an economy over time. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP.[1] Growth is usually calculated in real terms – i.e., inflation-adjusted terms – to eliminate the distorting effect of inflation on the price of goods produced. In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e., production at "full employment".
As an area of study, economic growth is generally distinguished from development economics. The former is primarily the study of how countries can advance their economies. The latter is the study of the economic aspects of the development process in low-income countries. See also Economic development.
Since economic growth is measured as the annual percent change of gross domestic product (GDP), it has all the advantages and drawbacks of that measure.
Contents [hide]
1 Definitions and history
1.1 Economic growth versus the business cycle
1.2 Historical sources of economic growth
1.3 Economic growth per capita
1.4 Measuring economic growth
1.5 The power of annual growth
2 Theories of economic growth
2.1 Classical growth theory
2.2 The neoclassical growth model
2.3 Salter cycle
2.4 Endogenous growth theory
2.5 Energy and energy efficiency theories
2.6 Unified growth theory
2.7 The big push
2.8 Schumpeterian growth
3 Institutions and growth
4 Human capital

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