Answer to Question #127547 in Economics for Abhinay Kandpal

Question

Of the Economic Growth and Economic development which one is more important and why?

Answer 1

Economic growth is an increase in real and potential income (gross domestic product) over a long period of time. Real economic growth is GDP growth in monetary terms minus inflation. In a market and mixed economy, economic development is uneven, in the form of economic cycles. Since economic development implies constant positive dynamics regardless of the phase of the economic cycle, then economic development is more important. We know this from the history of our civilization, which is constantly in development, including economic development.