The basic indicators and types of
economic growth
Prepared by: Bobojonov Mubinjon
Plan of work :
1. Concept of Economic growth
1.1 GDP of final goods
1.2 The comparison of last centuries’ economic growth
with this century
1.3 The history of economic growth
2. Definition of economic Development
3. Key Indicators of economic growth
4. Extensive and Intensive in economic growth
. Concept of Economic growth
Economic growth is the increase in the amount of the
goods and services produced by an economy over time. It
is conventionally measured as the percent rate of increase
in real gross domestic product, or real GDP. Growth is
usually calculated in real terms, i.e. inflation-adjusted
terms, in order to net out the effect of inflation on the
price of the goods and services produced. In economics,
"economic growth" or "economic growth theory"
typically refers to growth of potential output, i.e.,
production at "full employment," which is caused by
growth in aggregate demand or observed output.

Economic growth refers to the rate of increase in the
total production of goods and services within an
economy. Economic growth increases the productivity
capacity of an economy, thereby allowing more wants to
be satisfied. A growing economy increases employment
opportunities, stimulates business enterprise and
innovation. A sustained economic growth is fundamental
to any nation wishing to raise its standard of living and
provide a greater well being for all.
GDP of final goods
Gross domestic product (GDP) is the monetary value of all
final goods and services produced in Australia over a specific
period of time, usually a year. It is the total value of production
within the economy. The total value of production is the total
value of the final goods or services less the cost of
intermediate goods purchased. GDP at market prices (nominal
GDP) measures the value of total production at the present
price level. That is, GDP at market prices measures both the
total physical volume of goods and services produced and the
prices at which these goods and services are sold. GDP at
market prices has considerable usefulness when measuring the
growth rates and relative importance of different industries or
sectors within the economy.
History and comparisons of economic
growth

Human history teaches us, however, that economic
growth springs from better recipes, not just from more
cooking. New recipes generally produce fewer unpleasant
effects and generate more economic value per unit of raw
material.” (Henderson, D. 2007) This little introduction is
a way to say that the more diversified an economy is the
fewer side effects it will have to bare. A more sustainable
and spread out use of the resources available in the
economy.

Back in the days countries tend to produce only the essentials
for ‘survival’, most part of the economies were set to produce
things like food, clothing, and houses. But nowadays, only small
parts of economiesare used to produce the so called
essentials. The reason behind this change is the industrial
revolution in the “late 18th and early 19th centuries when
major changes in agriculture, manufacturing and transportation
had a profound effect on the socio-economic and cultural
conditions in Britain. The changes subsequently spread
throughout Europe and North America and eventually the
World, a process that continues as industrialization. The onset
of the Industrial Revolution marked a major turning point in
human social history, comparable to the invention of farming
or the rise of the first city states; almost every aspect of daily
life and human society was eventually influenced in some way.”
Economic development

'Economic development' is a term that economists,
politicians, and others have used frequently in the 20th
century. The concept, however, has been in existence in
the West for centuries. Modernization, Westernization,
and especially Industrialization are other terms people
have used when discussing economic development.
Although no one is sure when the concept originated,
most people agree that development is closely bound up
with the evolution of capitalism and the demise of
feudalism

Economic development originated in the post war period
of reconstruction initiated by the US. During his 1949
inaugural speech President Harry Truman identified the
development of undeveloped areas as a priority for the
west. Economic Growth & development are two different
terms used in economics. Generally speaking economic
development refers to the problems of underdeveloped
countries and economic growth to those of developed
countries.
Key indicators


Gross Domestic Product.The total market value of all
final goods and services produced in a country in a given
year, equal to total consumer, investment and government
spending, plus the value of exports, minus the value of
imports.
The Consumer Price Index (CPI) is the benchmark
inflation guide for the U.S. economy. It uses a "basket of
goods" approach that aims to compare a consistent base
of products from year to year, focusing on products that
are bought and used by consumers on a daily basis. The
price of your milk, eggs, toothpaste and hair cut are all
captured in the CPI.

Extensive Growth, in economics, is based on the expansion of
the quantity of inputs in order to increase the quantity of
outputs, opposite to that of intensive growth. Thus, extensive
growth is likely to be subject to diminishing returns. It is
therefore often viewed as having no effect on per-capita
magnitudes in the long-run[1].

Reliance on extensive growth can be undesirable in the longrun because it exhausts resources. To maintain economic
growth in the long-run, especially on a per-capita basis, it is
good for an economy to grow intensively; for example, by
improvements in technology or organisation, thereby
increasing the production possibilities frontier of the economy
Thank you for your attention !