2.5

• Percentage Change:

  • Economists often use percentage changes to describe changes over time because they are unit-free, making comparisons easier.
• % change = (new value - old value)/old value x 100
• Economic growth refers to the increase in the capacity of an economy to produce goods and services over time. It is usually measured as the percentage change in real GDP (Gross Domestic Product).
• Real GDP growth reflects the expansion of an economy's output and is a key indicator of economic health.
• GDP: The total value of all goods and services produced within a country in a specific period, used to measure the economy's performance.