Economic Growth And Economic Development Essay

1072 Words May 10th, 2015 null Page
Economic growth may be considered as one of the macroeconomic objectives for a country. For the purposes of this essay, economic growth can be defined as an increase in ability and capacity of a country to produce goods and services compared to another period of time. Economic growth can be measured by the overall level of gross domestic product of a country (GDP per capita). Gross Domestic Product (GDP) is an estimate of total market output and national income, which adds up the value of all final goods in a given period of time (Costanza et al., 2009). It is typically represented by the equation GDP= C(consumption)+I(investment)+G(government spending)+(X-M(the value of exports subtracted from value of imports)). Generally, it is believed that GDP may show how the country has developed and grown over time, as well as it makes it easier to compare countries to each other. Although, GDP is used as an indicator of economic growth it often excludes factors that are calculated in economic development as well as other factors,such as the black market. It is often considered that if there is an increase in economic growth for a country, there will also be an increase in economic development. For the purposes of this essay economic development can be defined as improvement in welfare represented in reducing widespread poverty, raising living standards, increasing employment opportunities and reducing of income inequalities. Economic development may be measured by a number of…

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