Global Journal of Commerce & Management Perspective
Open Access

Strategies on Economic Growth and its Future Technology

Thomas Lamont^{* *}Correspondence: Thomas Lamont, Department of Economics and Finance, Leeds Beckett University, West Yorkshire, United Kingdom, Email:

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Description

Economic growth generally defined as an increase or expansion in the inflation-adjusted market value of an economy's goods and services generated in a financial year. Economists traditionally calculate such growth as a rate of interest of increase in real gross domestic product, or real GDP.

Growth is often determined in real terms, i.e., inflation-adjusted terms, to exclude the distorting influence of inflation on the pricing of products produced. National income accounting is utilized to measure economic growth. Because economic growth is calculated as the yearly percent change in Gross Domestic Product (GDP), it has all of the potential advantages and limitations of that metric. Countries' economic growth rates are typically compared using the GDP to population ratio (per-capita income). The "Economic Growth Rate" relates to the geometric annual rate of GDP growth between the first and last years of a time period. This growth rate measures the trend in the average level of GDP over the time, and it takes into account any volatility in GDP that occur around this trend.

Economists define intensive growth as economic expansion produced by more efficient use of inputs (increased productivity of workers, physical capital, energy, or materials). GDP growth created only by increases in the number of inputs available for use (for example, rapid urbanization or new territory) does not qualify as widespread growth. Economic growth is also created through the development of new goods and services.

Applications

• Increased output of products and services is identified as economic growth. Economic growth can be caused by variations in capital goods, level of employment, technology, and human capital.

• Using assumptions like the GDP, economic growth is frequently measured as the rise in the total market value of creation of the new products and services.

• Expansion, peak, contraction, and trough are the four main phases of economic growth.

• Tax relief often has a less impact on economic growth than an increase in government spending.

• It seems impossible that economic progress would be sustained if the benefits flow only to a limited group.

The economy has experienced varying phases of activity. The "business cycle" is the term coined to this process. There are four stages:

Expansion: During this phase, the economy experiences an increase in real GDP as well as employment, income, industrial production, and sales.

Peak: The point at which an economic expansion strikes its maximum. It actually represents a turning point.

Contraction: During this stage, every segment of an expansion starts to shrink. When there is a widespread, significant fall in economic activity, it is referred to as a recession.

Trough: The lowest point of an economic instability.

Conclusion

Digital innovation is a second strategy for generating economic growth. A representation of this is the development of gasoline fuel; before gasoline's potential to generate energy, the economic estimation of petroleum was rather low. Gasoline became a better and more effective way to distribute finished goods and carry goods while they are being processed. By combining capital goods in innovative, more productive ways, improved technology enables employees to produce more output with the same stock of resources. Since savings and investments are required to support research and development, they have a significant impact on the pace of technical progress, just similar to how they affect capital growth.