Economic growth is defined as the increase in utility, or the value of the final goods and services, produced by an economy (of a country or region) in a specific period of time (frequently one year). This concept deals mainly with the characteristics and factors that influence such growth.
Since there is an improvement in these indicators, they should lead to an increase in the population's lifestyle. Usually, the variable that is frequently used to measure profits is gross domestic product (GDP), this is the value at market price of the final goods and services produced in a country in a set time.
Information on the growth of a nation's economy is often short-term, however this information should be based on longer-term periods. When carried out in the short term, it is caused by fluctuations in aggregate demand, that is, variations in total spending in the economy in a given period. When it occurs in the long term, it arises from the aggregate supply, that is, from the total amount of goods and services that are offered for sale at an affordable price.
Some of the characteristics of economic growth are: human capital, the greater the number of people, the greater the growth. Schooling, influences human growth. Consumers vs work and wealth, influences the growth of income " per capita ".
Factors that determine economic growth: labor, physical capital, natural resources and technology. As technology the most influential factor today, as the contribution of technology for increased productivity will in turn benefit the economy of the country.
The wealth capacity of a country is what differentiates it from another; Therefore, the policies that each nation employs must always be focused on its economic growth, since in this way, when times of crisis arise, the decline and recovery will be much faster. It is vitally important that there is an adequate level of employment that supports a taxation that serves as an incentive for future investments, which in turn, contribute to the increase of the nation's wealth.
