According to What Is Economics, economic development occurs when policymakers work to improve the welfare of citizens; economic growth refers to a country's increase in output of products and services. Economic growth is considered by most economists to be a subcategory of economic development.Know More
Economic development and growth are linked to one another, states What is Economics. When a country experiences economic growth, its gross domestic product (GDP) increases. When there is income growth per capita, meaning that income grows in relation to the country's population, it is called intensive growth. Extensive growth occurs when there is an increase in territory or population. Both lead to economic growth. According to the Business Dictionary, economic growth is influenced most by technological advances and policy improvements.
The level of economic development is measured by a country's poverty rates, literacy rates, infant morbidity rates,life expectancy and overall health and safety, as defined by What is Economics. Development takes place when policymakers and communities work together toward economic betterment. Economic growth is one facet of development, but there are others, including improved social welfare, a secure political system and stable government. If a country experiences economic growth, economic development typically follows, according to What is Economics.Learn more about Economics
Equilibrium GDP occurs when the output level, which is the total amount of goods and services produced, is exactly equal to the total amount of goods and services purchased. It is the level of GDP where aggregate supply and aggregate demand are equal.Full Answer >
Labor productivity is determined by dividing the output, or total amount of goods or services produced, by the number of workers. Labor productivity is used to measure worker efficiency.Full Answer >
According to Economics Help, economic growth is caused by an increase in aggregate demand and supply. An increase in national output and national income also contributes to a country's economic growth.Full Answer >
The function of an economic institution in society is to enhance development and financial security through the provision of financial services. An economic institution may provide business inventory financing and indirect consumer loans. It may educate society about how to make sound financial decisions. Other economic institutions, such as insurance companies, provide cover for various risk factors in addition to providing investment opportunities and loans.Full Answer >