Written by the Fiveable Content Team • Last updated September 2025
Verified for the 2026 exam
Verified for the 2026 exam•Written by the Fiveable Content Team • Last updated September 2025
Definition
Economic growth refers to an increase in the production and consumption of goods and services within an economy over time, leading to improved living standards for individuals.
Related terms
Gross Domestic Product (GDP): The total value of all goods and services produced within a country during a specific period.
Consumer Spending: The amount of money spent by individuals on goods and services.
Employment Rate: The percentage of people who are employed out of the total working-age population.