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Understanding the Economy: Growth, Employment, and Stability
Economic growth is a key indicator of an economy's health, measured by the gross domestic product (GDP). GDP represents the total market value of all goods and services produced within an economy over a year. An increase in GDP, adjusted for inflation, signifies economic growth, while a decrease indicates contraction. This cycle of expansion and contraction forms the business cycle, which includes phases of prosperity, recession, depression, and recovery.