How Economic Growth Is Measured and Its Importance

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Economic growth is typically measured by increases in GDP and is important for countries to improve living standards. The U.S. economy experienced a sharp decline in economic growth due to the COVID-19 pandemic and related lockdowns. Economic growth is impacted by employment levels as higher employment can fuel demand and spending that drives growth, while unemployment reduces aggregate demand.

1. How is economic growth measured? Why is economic growth
important for any country?
2. In the aftermath of the current COVID-19 pandemic, how
would you describe the economic growth scenario for the U.S.
economy? Explain your answer.
3. Is economic growth impacted by prevailing
employment/unemployment levels in the economy? Explain.

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