Introduction to Economic Growth | California State University, Northridge

University:
California State University, Northridge
Course:
ECON 370 | Economic Development
Academic year:

2024
Views:

391

Pages:

2
Author:

Mikael K.

Introduction to Economic Growth 1. Definition and Interpretation: - First, a definition and explanation: The enhancement of a nation's social development and economic well-being over time is referred to as economic growth. This entails raising income levels, decreasing poverty, and improving people's quality of life in general. - Importance: Achieving sustainable economic growth, lowering inequality, and raising living standards all depend on economic growth. For many nations and international organizations, it is a crucial objective. 2. Special Signs: - Gross Domestic Product (GDP): The GDP measures the total value of goods and services generated within a nation's boundaries over a specific time period and is a crucial measure of both economic activity and national economic progress. - Human Development indicator (HDI): Based on variables like life expectancy, per capita income, and education (literacy and school attendance), the HDI is a composite indicator that assesses a nation's level of development. - Index of GNI: Within a population, income inequality is measured by the GINI index. Greater inequality in income is indicated by higher values, whereas lower values imply lower inequality. Concepts of Economic Growth 3. Rostov development stages: The stages of Rostov development: - This hypothesis, which was developed by Walt Rostow, contends that economic expansion happens gradually. Among these steps are: Conventional individuals - Travel requirements Take off Aiming toward adulthood - Maximum use age It denotes that a linear surface is followed by states.