The essence of economic growth. Factors and types of economic growth.

The problem of the economy growing takes central seat in economic discussions where the question is about bases of socio-economic life of people. A question about the economy growing is important and for determination of prospects of development of country, its regions, one or another social structure.

The Economic Growthmeans the increase of the total real output (or income) during rather long periods. Such a process can be observed in most of national economies, and it should be distinguished from short-term output fluctuations caused by changes of the aggregate demand. The economic growth reflects the long-term growth of aggregate supply.

The economic growth means:

a) the increase of total real income of the nation;

b) the growth of real income per capita.

c) the growth of real income per worker.

For measurement of the national economy's growth the indicators of total output (income) can be used. Usually the general growth dynamics is being described by the value of the Gross Domestic Product (GDP), Gross National Product (GNP) or National Income. Annual growth rate of output can be find

as ,	Where Yt - real release of current year; Yt-1 - real release of previous year