How Is Economic Growth Measured? (1 Viewer)

[Sparcod]

How is economic growth measured?One source says ABS gets expenditure, income and production and averages them. One says that it's the growth in aggregate demand. or the growth in C + I + G + X - M

 

[sunjet]

In a number of ways including AD and AS.
AD = C + I + G + X - M (Most common for HSC)

 

[Riviet]

In other words, it can be measured by the change in real GDP.

 

[gnrlies]

By definition GDP can be measured from either the supply or demand perspective.

It is measured from the supply perspective due to statistical reasons (it is impossible to do it any other way without raising serious questions over the validity of the data)

 

[widescreen]

I thought economic growth refers to an increase in the productive capacity. In other words, an shift in the PPC curve. But then how does that work with GDP?

 

[widescreen]

thanks