Economic Growth And Development — Important Questions

To separate output change from price change

GDP is measured at constant prices so that the change in output can be seen clearly without mixing it with the change in prices.

As a percent per annum

Growth rate is generally expressed as a percentage per year, which makes comparison across periods easier.

National output, Capital volume, Savings and investment

Economic growth refers to expansion in economic variables such as national output, capital volume, and savings and investment. Illiteracy rate is linked more with development.

It describes the short-run performance of an economy

Economic growth is often used to describe the short-run performance of an economy by comparing GDP from one period to another.