Effect of Sustained Economic Growth
What is the Effect of Sustained Economic Growth?
Written by J. Mance Gordon
Updated at April 23rd, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
- Courses
What is the Effect of Sustained Economic Growth?
Nothing is more important for people’s standard of living than sustained economic growth. Even small changes in the rate of growth, when sustained and compounded over long periods of time, make an enormous difference in the standard of living.
The following formula is used to calculate what GDP will be at the given growth rate in the future:
GDP at starting date × (1 + growth rate of GDP)years = GDP at end date
For example, an economy that starts with a GDP of 100 and grows at 3% per year will reach a GDP of 209 after 25 years; that is, 100 (1.03)25 = 209.
Related Topics
- Rule of Law relate to Economic Growth
- Labor Productivity
- Productivity and Learning Curve
- Experience Curve
- Acceleration Principle
- Aggregate Production Function
- How to Measure Productivity
- What is the Effect of Sustained Economic Growth?
- How are compound growth rates and compound interest rates related?
- Compound Growth Rate
- Solow Growth Model
- What are the Components of Economic Growth?
- Porter's Diamond
- Physical Capital
- Human Capital
- Infrastructure
- Staple Thesis
- Resource Curse
- Capital Deepening
- What are Growth Accounting Studies?
- What is a Healthy Climate for Economic Growth?
- Economic Convergence
- Emerging Market Economy
- BRIC Countries
- Growth Consensus
- Economic Conditions
- Leading Economic Indicators
- KOF Economic Barometer
- CEO Confidence Survey
- NAB Business Confidence Index