University of British Columbia

Economic growth is a sustained expansion of production possibilities measured as the increase in real GDP over a given period Economic growth rate is the annual percentage change of real GDP – Real GDP G.R = Real GDP in current year −Real GDP in previous year Real GDP in previous year X100 – OR gy (t − 1,t) = Yt−Yt−1 Yt−1 ¬ gy (t − 1,t) is the GDP growth rate from period t-1 to period t ¬ Yt is the GDP in ye