Written by Qudratova Feruza mm-55i Economic growth and national wealth

Written by Qudratova Feruza MM-55i

Economic growth and national wealth

Economic growth creates more profit for businesses. As a result, stock prices rise. That gives companies capital to invest and hire more employees. As more jobs are created, incomes rise. Consumers have more money to buy additional products and services. Purchases drive higher economic growth. For this reason, all countries want positive economic growth. This makes economic growth the most-watched economic indicator. Gross domestic product is the best way to measure economic growth. It takes into account the country's entire economic output. It includes all goods and services that businesses in the country produce for sale. It doesn't matter whether they are sold domestically or overseas.

GDP measures final production. It doesn't include the parts that are manufactured to make a product. It includes exports because they are produced in the country. Imports are subtracted from economic growth. The most accurate measurement of growth is real GDP. It removes the effects of inflation. The GDP growth rate uses real GDP.in addition there are two types of economic growth;exstensive and intensive. Extensive growth in its pure form is based on quantitative increases in labour, capital and land, whereas intensive growth is derived from gains in overall productivity,i.e. increasing efficiency of labour and a better utilization of capital and other means of production.there are 3 types of economic growth:solou domar and harrod models. It is the total value of wealth and goods generated by all economic activity in a given nation. The National Wealth is a useful framework through which to measure the progress of an economy and corresponding economic resources. It has a major effect on a nation's capacity to generate income.

In conclusion, total monetary value of the capital, goods and services, including net foreign balance and tangible assets, owned by a nation at a particular period of time. Used in a nation's overall economic analysis and planning. Net worth or net wealth given by gross assets minus liabilities.