Economic Growth
Economic growth is apparently defined as the process which stimulates and results to an increase in terms of the capacity regarding production of goods and the overall service. In essence, economic growth involves the comparison of the tremendous increase in terms of productivity over a given period of time. The key parameter used to determine the economic growth includes nominal terms, inflation in addition to real terms pertaining inflation (Lewis, 2013).
Economic Growth has essential and parametric limitations in line with improving the overall living standards of people. In addition, the economic growth mainly depends on the channel of distribution concerning higher incomes. Economic growth is an essential area of research since it might bypass the less fortunes and poorest in community as a whole. With increase demand in the market, economic growth has impacted heavily regarding the negative externalities. These negative externalities include pollution, higher delinquency rates in addition to the congestion and thus, it has significant effects concerning the living standards.
Causes of Economic Growth
Apparently, when conducting a research on economic growth the two fundamental causes of economic growth must be taken into consideration. The two key contributors include aggregate demand as well as the production capacity and supply in the overall production. For instance, the graph below depicts the United Kingdom economic growth. Thus, researcher might use it to conduct a thorough economic growth research in the long run (McCombie & Thirlwall, 2016).
Reasons for Choosing Economic Growth
The key areas that researcher and economic analyst are interested on is the makeable ways of how to govern macro economy in terms of the policies making and the overall implementation process. In addition, economists also depicts on the trend in line with the market failures and the possible remedy. Peculiarly, economic growth is the science which aims at improving the living standards of individuals in the community as well as eradicating the current emerging challenges (Jorgenson, Gollop & Fraumeni, 2016)
Conclusion
In summary, the fundamental topic of discussion posed and depicted is on the economic growth in business. The overall description causes and importance primarily covered in the analysis. Economic growth has a fanatical role in terms of community empowerment as well as in improving the living standards.
References
Jorgenson, D., Gollop, F. M., & Fraumeni, B. (2016). Productivity and US economic growth (Vol. 169). Elsevier.
Lewis, W. A. (2013). Theory of economic growth (Vol. 7). Routledge.
McCombie, J., & Thirlwall, A. P. (2016). Economic growth and the balance-of-payments constraint. Springer.
