Explain the concept of economic growth.

1. Economic growth is the increase in an economy’s real national income or gross national product (GNP) over a period of time.

2. According to Simon Kuznet, ‘the capacity to sustain rapidly increasing numbers at the same or only slightly lower levels of living, in and of itself, can be viewed as economic growth”.

3. It is measured by using data on GDP, which is a measure of the total income earned by the people of a country through their participation in the production process.

4. The factors that determine the economic growth of a country are its population, size, natural resources, economic policies, etc.