Goals of Macroeconomics: Economic Growth

Economic Growth: is a positive change in the level of production on goods and services. We need economic growth to maintain our current standard of living as the population expands. So when economic growth outpaces population growth we are required to increase out stanard of living.

Economic Growth is measured by Real Gross Domestic Product Per Capita (real GDP per capita)
Real GDP per capita= Real GDP / Population
Economic Growth can be achieved through increasing our labour force and creating an increase in productivity.

The difficulties in achieving this goal are the GDP does not capture all economic output (such as used goods, drugs, black market goods) and economic growth can lead to high rates of pollution, depletion of our natural resources, extra stresses as a whole, and a lot more complications with our everyday life.

This info was take from my study notes from class and from the lecture given by Dr. Stephanie Powers ( winter 2012)