Economic growth is the foremost objective of macroeconomic policies.
Economic growth and development
Introduction Economic growth is the foremost
objective of macroeconomic policies. Higher the economic growth higher the
national income which will help solve problems of poverty, unemployment,
inflation, and international trade of a country. YGrowth rate = -------------- P Y = real
income (NNP at factor cost) P =
population Economic growth implies more
output and economic development implies both increase in output and changes in
the technology and institutional arrangement by which it is produced. Input
efficiency leads to growth, allocation of input by sector leads to development.
Economic development is the outcome of conscious and deliberate efforts
involved in planning. Economic growth signifies the progress of an economy under
the stimulus of certain favorable circumstances.
Tags : Managerial Economics - Economic Environment And Transition In Indian Economy
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