What is Economic Growth ?

&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad1" id&equals;"quads-ad1" style&equals;"float&colon;left&semi;margin&colon;0px 0px 0px 0&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;<p><strong>Economic Growth Takes Place when<&sol;strong> <&sol;p>&NewLine;<ol>&NewLine;<li>There is Increase in the national Income of a Country <&sol;li>&NewLine;<li>Or Increase in Country’s Productive Capacity<&sol;li>&NewLine;<&sol;ol>&NewLine;<p> To understand the concept of Economic Growth&comma; we use many tools like that of the&nbsp&semi; <strong><em>Production possibility Curve&period; <&sol;em><&sol;strong>Let us first describe this simple concept<strong><em> &colon;<&sol;em><&sol;strong><&sol;p>&NewLine;<h2>Production Possibility Curve<&sol;h2>&NewLine;<p> The PPC represents a Boundary in&nbsp&semi; the sense that it shows the current availability of resources and technical knowledge&comma; a country cannot produce beyond its potential capacity&period; So the PPC is therefore a Short Run Diagram&semi; in the long run the PPC can be increased&period; So it is shifted forwards or rightwards&period; It is generally considered that country’s PPC curve Shifts forward but there are certain possibilities that it may go leftwards&period; <&sol;p>&NewLine;<blockquote><p> <strong>For Example&colon;<&sol;strong> Countries that are going through warfare&comma; Lets take Afghanistan whose Aggregate Demand decrease to a very high level during the war period and even after the war&period; We can also take another example of Revolution as in the country of Iran during the Khomeini revolution which flew a lot of foreign investment and a decrease Aggregate Demand during his regime&period; Such factors of war&comma; natural disaster or war basically affects the factors of Consumption&comma; Investment and Government Expenditure that as a consequence affects the Aggregate Demand which slows down the economy&period; &NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad2" id&equals;"quads-ad2" style&equals;"float&colon;none&semi;margin&colon;0px 0 0px 0&semi;text-align&colon;center&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;<&excl;-- WP QUADS Content Ad Plugin v&period; 2&period;0&period;95 -->&NewLine;<div class&equals;"quads-location quads-ad3" id&equals;"quads-ad3" style&equals;"float&colon;none&semi;margin&colon;0px&semi;">&NewLine;&NewLine;<&sol;div>&NewLine;&NewLine;