8.4 Managing the Economy

How can economic growth be promoted and measured?

Economic growth occurs when a country's output exceeds its population growth and more goods and services are available for each person.

A few examples of how businesses can encourage economic growth are:

1. Increasing the number of people in the workforce

2. Investing in human capital through education programs and job training

3. Redesigning work processes to be as effective and efficient as possible

Economic growth can be measured through the consumer price index, which indicates trends in general among prices in the country.

Above is the consumer price index from 1951-1968 in the United States.

Interesting fact:

Since 2010, the inflation for housing has increased monthly by 3.1 percent.