Eco-This was taken from economics past papers, page no-???, #ECO

Economic growth is the increase in the value of goods and services produced by an economy over time. It is usually measured as the percentage increase in a country’s Gross Domestic Product (GDP) or Gross National Product (GNP). Economic growth signifies that an economy is improving its ability to produce goods and services, leading to a higher standard of living, increased employment, and improved infrastructure.

There are two types of economic growth:

1. Short-term Growth (Cyclical): Temporary growth due to economic cycles, often influenced by factors like government spending or short-term demand increases.

2. Long-term Growth (Sustainable): Growth driven by fundamental factors like technology, infrastructure, and education, which can be sustained over longer periods.

Key Drivers of Economic Growth:

1. Increase in Capital: Investment in physical capital (e.g., machinery, factories, infrastructure) boosts productivity and enables more efficient production.

2. Labor Force Growth: A growing labor force means more workers are contributing to the economy, which can increase output.

3. Technological Advancements: Innovation improves efficiency and creates new products and services, allowing for faster and more sustainable growth.

4. Human Capital Development: Investing in education, training, and skills improves labor productivity, leading to higher economic output.

5. Improved Efficiency: Reducing waste and streamlining processes helps use resources more effectively, contributing to growth.

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