Economic growth can be defined as the increase or improvement in the inflation adjusted market value of the goods and services produced by an economy over a certain period of time. Statisticians conventionally measure such growth as the percent rate of increase in the real gross domestic product, or real GDP.
It means that the ratio between people’s income and the prices of what they can buy is increasing: goods and services become more affordable, people become less poor.
Economic growth is commonly measured in terms of the increase in aggregated market value of additional goods and services produced, using estimates such as GDP.
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