Long-Term Growth

An increase in the total output of a nation, or an increase in the standard of living.
GDP is the total value of all final goods and services produced in an economy in 1 year.
Changes in GDP can occur from increases in prices or total production. An increase in prices is bad, but total production is good.
So, real GDP measures the value of goods and services produced in an economy, adjusted for inflation, providing a more accurate reflection of economic growth over time.
Just checking for increased production is not a good representation of economic growth, so population helps determine the standard of living.
For example, if real GDP doubles, then those people have way more stuff. which typically leads to improved quality of life and greater access to resources, provided that the benefits are distributed fairly across the population.
But if population doubles as well, then there is no economic growth.
To adjust for population gdp is measured per capita (per person). So it would be real gdp per capita = real gdp / population.
Another problem is income distribution. A skewed income distribution can hinder overall economic progress, as it limits the purchasing power of a significant portion of the population, thereby reducing demand for goods and services. In addition, it does not factor in other externalities like pollution, as well as what type of products are made.

Income in economy is saved or spent, when it is spent it becomes income for others and results in short-term growth.
When saved it is used to fund investment, and leads to long-term growth. The total amount of investment = total savings.

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Long-Term Growth

An increase in the total output of a nation, or an increase in the standard of living.
GDP is the total value of all final goods and services produced in an economy in 1 year.
Changes in GDP can occur from increases in prices or total production. An increase in prices is bad, but total production is good.
So, real GDP measures the value of goods and services produced in an economy, adjusted for inflation, providing a more accurate reflection of economic growth over time.
Just checking for increased production is not a good representation of economic growth, so population helps determine the standard of living.
For example, if real GDP doubles, then those people have way more stuff. which typically leads to improved quality of life and greater access to resources, provided that the benefits are distributed fairly across the population.
But if population doubles as well, then there is no economic growth.
To adjust for population gdp is measured per capita (per person). So it would be real gdp per capita = real gdp / population.
Another problem is income distribution. A skewed income distribution can hinder overall economic progress, as it limits the purchasing power of a significant portion of the population, thereby reducing demand for goods and services. In addition, it does not factor in other externalities like pollution, as well as what type of products are made.

Income in economy is saved or spent, when it is spent it becomes income for others and results in short-term growth.
When saved it is used to fund investment, and leads to long-term growth. The total amount of investment = total savings.