Economic Growth

Definition:
It is measured by increse in total expenditure
in economy, total income for individidual and
companyin economy and total output in
economy

Measures available:
Gross domestic product (GDP): is the result
of all economy activity in the economy
( even though UK citizens or organisation
may receive income from assets abroad, or
make payments to foreign individuals or
organisation).

Gross National Product (GNP) is GDP inclusive of amount of

by the UK from overseas assets, but exclusive of amount paid
to overseas holders of UK assets.

A formula for measuring total national

expenditure is:
E = C + I + G + Xn where:
E: TOTAL NATIONAL EXPENDITURE
C: CONSUMER SPENDING
I: INVESTMENT SPENDING
G: GOVERNMENT SPENDING
XN: NET EXPORT ( TOTAL EXPORTS
TOTAL IMPORTS)