HL.b.11—Economic growth measurement

Measure economic growth carefully.

Economic growth is commonly measured as the percentage change in GDP; GDP per capita better approximates average output per person but still misses distribution and wellbeing.

GDP rises 4% while population rises 5%; GDP per person can fall even as total output grows.

State whether you mean total or per-capita growth and what the measure leaves out.

Key idea: Measure economic growth carefully.

GDP growth is not automatically improvement in living standards.