Objectives Of Economic Growth

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1. Introduction

Economic growth is part of the 5 macroeconomic objectives that are used to judge the performance of the economy, in every growing economy the is going to be an increase in the production of goods and services each year.it is vital to know whether the economic growth of this country is able to cater to the growing population so that the standard of living can increase (Mohr, 2015)

2. Content

Content

2.1. What is economic growth?

Economic growth is an increase in national income as a result of an increase in the productive capacity of a country (Smith, 1995). Absolute growth refers to labor, money or production units added during a specific period, while relative growth refers to the specific the percentage in growth of a specific geographic location compared to another in the same period of time (Jumper, 1980)

According to Smith (1995) national income is the income received from the factors of production of a country in a year and can be calculated using three methods namely:

• The expenditure which calculates the total money spent on goods and services in a year;

• The production method which measures the value of goods and services produced in a year.

• The income method which measures the total amount of income received by a country in a year.

2.2. Sources of economic growth a. Supply factors

• Natural resources

Every country has natural resource which are fixed and have to be discovered through exploring or in some cases by accident, new techniques have to be discovered in other to exploited and make them more profitable(Mohr,