Question

Write a brief essay (300-500 words) that describes how a country's economic growth can be measured and compared. Cover the following areas: Define economic growth in your own words. Discuss how economic growth is measured. Compare and contrast two countries and their economic growth over the last 50 years.

Answer 1

Economic growth is an increase in the production of goods and services over a specific period. To be most accurate, the measurement must remove the effects of inflation.

Economic growth gives companies more profit. As a consequence, inventory prices are rising. This provides businesses the opportunity to invest and employ more staff. As more jobs are generated, revenue increases. Consumers can purchase extra goods and services with more cash. Purchases drive greater development in the economy. For this reason, favorable economic growth is what all nations want. This makes financial development the financial indicator that is most watched.

Gross domestic product is the best way to measure economic growth. It takes into account the country's entire economic output. It includes all goods and services that businesses in the country produce for sale. It doesn't matter whether they are sold domestically or overseas.

The most accurate measurement of growth is real GDP. It removes the effects of inflation. The GDP growth rate uses real GDP.

The United States has an abundance of the four factors of production. These are land/natural resources, labor, capital equipment, and entrepreneurship. The big land mass of the United States is comparable to that of Russia, Canada, and Australia. But it does have more natural resources than those nations. A cold climate thwarts Canada and Russia. Australia is a dry country.
These natural resources were attracting labor. The outcome is a big, qualified, and mobile U.S. labor force. It rapidly reacts to altering company requirements. A home-grown test market is provided by the big and varied population. It provides the experience of national businesses in understanding what customers want. This has provided a comparative advantage to the United States in manufacturing consumer products. As a consequence, the nation generates more than 70 percent for personal consumption.

All of these give U.S. companies an advantage in exporting. As a result, the United States is the world's fourth largest exporter. It has allowed the country to excel in producing the fourth factor of production, capital equipment. These include computers, semiconductors, and medical equipment. It also includes industrial machinery and equipment.