ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic growth is an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal or real terms, the latter of which is adjusted for inflation.

Detailed explanation-2: -Economic growth is an increase in the production of goods and services in an economy. Increases in capital goods, labor force, technology, and human capital can all contribute to economic growth.

Detailed explanation-3: -An increase in the production of goods and services in an economy is called economic growth. This is because production of more goods and services results in more jobs, more income, and the improvement of the living standard of the people.

Detailed explanation-4: -Broadly speaking, there are two main sources of economic growth: growth in the size of the workforce and growth in the productivity (output per hour worked) of that workforce. Either can increase the overall size of the economy but only strong productivity growth can increase per capita GDP and income.

Detailed explanation-5: -Economic growth is the increase in the production of goods and services from one period to the next. As such, the value of these goods and services increases, resulting in larger corporate profits. It has a snowball effect, which often leads to higher stock prices and a rise in employment.