What is Economic growth?
Economic growth: A rise in a country's output over time.
Where Economic growth fits
Economic growth is part of Policy & Labor in Economics. Governments steer economies with taxes, spending, subsidies, price ceilings, tariffs and minimum wages. Each policy helps some groups and shifts costs to others.
Practical tip
Ask who benefits, who pays and what behavior changes.
Related terms
- Subsidy
- Government money that lowers the cost of a product or activity.
- Minimum wage
- The lowest pay the law allows for work.
- Gig economy
- Work done through short, flexible jobs rather than permanent roles.
- Supply shock
- A sudden event that sharply changes the supply of a good.
- Tariff
- A tax on imported goods.
- Price ceiling
- A legal limit on how high a price can go.
- Stagflation
- High inflation combined with slow growth and high unemployment.
- Fiscal policy
- Government spending and taxation choices.
Formulas you will use with it
Test yourself
Which term means: “A rise in a country's output over time.”?
Minimum wage · Gig economy · Economic growth
Answer: Economic growth
Learn Economic growth by playing
Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.
Play BizJourney free →