Tuesday, 12 January 2010

Economic growth


I have read an article about economic growth and why governments try to achieve economic growth.
First of full, economic growth it is an increase in real GDP and an increase in productive capacity, which shows us the maximum output that the economy can produce.
Why governments want to achieve economic growth? The most important reason for that is that government wants to gain a benefit from it and it is including increasing material living standards. And government point out that economic growth has to include stability, because with stability, economic growth will be achieved.
For government of the country it is very important to have a sustainable economic growth, because it will stant for all the time, another words-stable economic growth, which can be maintained year after year and that can be enjoyed generation after generation. And I think that economic growth it's a really important thing for country, because in countries where economic growth is high, therefore conditions of living are much better and unemployment is lower.For achieving economic growth government should avoid the costs which arise from a negative output gap, such as unemployment and positive output gap, such as inflation.

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