Introduction In economics, "economic growth" or "economic growth theory" typically refers to growth of potential output, i.e. production at "full employment," which is caused by growth in aggregate demand or observed output. It is conventionally measured as the percent rate of increase in real gross domestic product, or real GDP ( ). Often, the concern about economic growth focuses on the desire to improve a country's standard of living—the level of goods and services that, on average,…
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