Economic growth is defined at the
rate of
change in the
Per Capita GDP. Positive economic growth shows an outward shift in the economy's
Production Possibilities Curve.
Many people think this is an
indicator of a nation's
standard of living, however, a
positive rate of economic growth does not necessarily
impact said nation's living standards because it does not take into account how the extra
goods and
services are
distributed among the
population, as well as the fact that it ignores other determinants such as leisure time.