What is the difference between GDP growth and economic growth?
GDP growth and Economic Growth:
An economy has many components. Gross Domestic Product is one of the components of an economy. All the components of an economy dictates whether the economy is growing or not.
Answer and Explanation:
The difference between economic growth and GDP growth is the fact that economic growth is evidenced by total sum of change in all the components of an economy and not growth in GDP alone while GDP growth is evidenced by a growth in GDP.
Gross Domestic Product is a measure which refers to the value of all the finished products manufactured within a particular state at a particular time. GDP growth refers to an increase in all the components that make up the GDP which include but are not limited to net trade, personal consumption, government spending and business investment among others. GDP growth is evidenced by increased levels of employment, increased personal income and increased levels of business investments.
An economy is a place where goods are produced and distributed for consumption by consumers. The factors that ascertain the state of well-being of an economy include the GDP, employment rates, balance of payments and the excess or deficiency in trade. Therefore, economic growth is the total sum of change in all the factors that make up the economy and not the growth in GDP alone.
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from CLEP Social Sciences and History: Study Guide & Test PrepChapter 59 / Lesson 2