National Economic Growth

Definition

National economic growth refers to an increase in a country's overall production of goods and services over a period of time. It is measured by the Gross Domestic Product (GDP) and indicates the health and progress of an economy.

Analogy

Think of national economic growth as a roller coaster ride. When the roller coaster goes up, it represents economic growth, with businesses thriving, people earning more, and overall prosperity. When it goes down, it represents economic decline or recession.

Related terms

Inflation: Inflation refers to the general increase in prices of goods and services over time. It erodes purchasing power and can impact economic growth negatively.

Unemployment Rate: The unemployment rate measures the percentage of people who are actively seeking employment but cannot find jobs. High unemployment rates can hinder economic growth.

Productivity: Productivity measures how efficiently resources are used to produce goods and services. Higher productivity leads to increased national economic growth.