Courses : Intermediate Macroeconomics Lecturer : Frischa Adellia Semester : 4th Semester, 2022/2023 Sesion Economic Growth in Macroeconomics Economic growth is the process of increasing the output of goods and services in a country's economy within a certain period of time. Economic growth is expressed by indicators such as GDP (gross domestic product), GNP (gross national product), and income per capita. High economic growth is considered an indicator of economic prosperity, because economic growth can affect people's welfare and the political stability of a country. Factors that affect economic growth include investment, international trade, technology, human resources, and government policies. High investment can increase production and create new jobs. International trade can open new markets for domestic products, while technology can increase efficiency and productivity. Quality human resources can increase skills and creativity, while supportive government policies can provide incentives and stability for economic sectors. High economic growth can have a positive impact on society, such as increased employment opportunities, increased income, increased living standards, and progress in infrastructure. However, unsustainable economic growth can have negative impacts on the environment and society, such as pollution, poverty and social inequality. To achieve sustainable economic growth, appropriate and sustainable economic development policies are needed. These policies include fiscal policy, monetary policy, trade policy, industrial policy, and environmental policy. These policies must be designed in such a way as to accelerate economic growth, improve people's welfare, and be environmentally sustainable. Sustainable economic growth can also be achieved through improving the quality of human resources, such as education and skills training. High quality human resources will increase productivity and innovation, as well as strengthen a country's economic ability to compete in the global market. In addition, it is also important to develop potential economic sectors, such as the manufacturing industry, information technology and tourism. The development of these economic sectors can create new jobs and increase the added value of domestic products, as well as help increase a country's competitiveness in the global market. In order to achieve sustainable economic growth, it is also important to pay attention to environmental aspects. Sustainable economic development policies must integrate environmental and sustainability aspects. This can be done by promoting environmentally friendly technologies, sustainable management of natural resources, and reduction of greenhouse gas emissions. In a global context, economic growth can also affect trade relations between countries and political stability. High economic growth can increase trade relations between countries and reduce political conflicts. However, uneven economic growth can exacerbate social and economic inequality and increase political tensions. Overall, economic growth is a complex process and is influenced by many factors. It is important to develop appropriate and sustainable economic development policies and strategies to achieve positive economic growth and have a positive impact on society and the environment. In addition, it is also important to pay attention to aspects of income distribution and social inequality. High economic growth does not always mean equal distribution of income and reduced social inequality. High social inequality can exacerbate inequality in society and can threaten the political stability of a country. Therefore, it is important to develop appropriate redistribution policies, such as progressive taxes and social programs that can help the less fortunate. In addition, economic development must also focus on developing less developed regions and promoting inclusive economic growth. Finally, in a global context, economic growth can also be influenced by external factors such as global economic conditions and climate change. Unstable global economic conditions can affect a country's economic growth through international trade and foreign investment. Meanwhile, climate change can affect certain sectors such as agriculture, fisheries, and tourism, which can affect overall economic growth. In order to overcome these challenges, it is important to develop strategies for sustainable and adaptive economic development. The economic development strategy must be able to face complex economic and environmental challenges, and provide benefits to society as a whole. Overall, economic growth is an important factor in the development of a country, but keep in mind that sustainable economic growth must pay attention to social, environmental and sustainability aspects, and be able to face complex economic and environmental challenges. The following are some of the characteristics of positive economic growth: 1. Increase in per capita income: Positive economic growth is usually followed by an increase in per capita income, which is the average income of each individual in a country. 2. Increased production: Positive economic growth is usually followed by increased production in various economic sectors, both industrial, agricultural and service sectors. 3. Increased investment: Positive economic growth is usually followed by increased investment, both in the form of domestic and foreign investment. 4. Increased employment: Positive economic growth is usually followed by an increase in employment, thereby reducing the unemployment rate. 5. Improvement of community welfare: Positive economic growth is usually followed by improvements in community welfare, such as access to education, health, and adequate housing. Examples of countries experiencing positive economic growth are China, India and Indonesia. These countries have experienced high economic growth in recent years, especially in the manufacturing, agriculture and service sectors. Economic improvement in these countries was also followed by increased employment and social welfare. However, keep in mind that high economic growth does not always have a positive impact on society and the environment. Unsustainable economic growth can threaten environmental sustainability and result in greater social inequality. Therefore, it is important to develop sustainable and inclusive economic growth.