Answer to Question #304846 in Macroeconomics for Damion

Question

Explain both the meaning of economic growth and why it is considered to be an important objective for government. 

Apply relevant economic analysis to evaluate why it is argued that relying on economic growth itself is not a useful way of measuring real progress in advancing the well-being of society.

Answer 1

Economic growth is the increase in amount of goods and services produced per head of the population over a period of time

Economic growth increases state capacity and the supply of public goods. When economies grow state can tax that revenue and gain the capacity and resources needed to provide public goods and services