Question

explain Economic growth and how economic growth directly impacts income and standard of living

Answer 1

Economic growth refers to the increase in the value of the production of the final goods and services in the economy in a given period or increase in GDP for short. A high level of economic growth means that the expenditure and incomes in the economy are rising fast as GDP is just a measure of aggregate expenditure or aggregate income. Thus, as incomes are growing people can cosnume more and better goods and invest more for the future, and thus the standard of living will improve with high rates of growth. Economic growth is the single most important objective for all governments and country as every one wants to improve their living standards