Economic GrowthEconomic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productive capacity of an economy, thus allowing more needs to be satisfied. A growing economy increases job opportunities, stimulates entrepreneurship and innovation. Sustained economic growth is critical for any nation that wishes to raise its standard of living and ensure greater well-being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced in a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services minus the cost of intermediate goods purchased. GDP at market prices (nominal GDP) measures the value of total output at the current price level. That is, GDP at market prices measures both the total physical volume of goods and services produced and the prices at which those goods and services are sold. GDP at market prices has considerable utility in measuring growth rates and the relative importance of different industries or sectors within the economy. The method for measuring GDP at market prices is implicit in the following formula; [(current year quantity) x (current year price)]. However, GDP at constant prices is the most common method of measuring economic growth. GDP at constant prices excludes the effect of price changes and allows f...