- Growth, or Economic Growth, is an increase in output in a given period of time. Annually, it is measured in percentages by a percent increase in output. Growth is more "quantitative". Growth and Development are not the same thing. Output can be measured in GDP, GNP, NDP or NNP. There is no perfect way to measure growth because there is not an effective way to collect all the necessary data, however GDP seems to be a commonly accepted way to measure growth.
- It is not the same as development. Growth, measured in terms of an increase in GDP, is a quantitative measure.
- Economic growth is a term used to indicate the increase of per capita gross domestic product (GDP) or other measure of aggregate income. It is often measured as the rate of change in GDP. Economic growth refers only to the quantity of goods and services produced. The measurement of economic growth using this scale means that it is effected by the same weaknesses that effect the ability of GDP to accurately reflect the economic state of a given country. Economic growth can be either positive or negative. Negative growth can be referred to by saying that the economy is shrinking. Negative growth is associated with economic recession and economic depression.
- In the long run, economies usually follow a cyclical pattern, where GDP growth can be modeled as a repeating S-curve. Refer to graph for further understanding. It is a lot like the business cycle.
Italy hires more Barrel Makers, thus it produces 10 million more barrels than the last year. Barrels from Italy are sold internationaly.
This is an improvement, ceteris paribus, because these barrels will increase the amount of income produced.
Toyota hires more mechanics to fix their cars' accelerators, thus making the cars better and in more demand, which in turn makes Toyota produce more cars.
This is an improvement, ceteris paribus, because these new and improved cars will increase the amount of income produced.