How is economic growth defined?

Economic growth is defined as an increase in production over time. This concept typically refers to the rise in a country's output of goods and services, measured by Gross Domestic Product (GDP). As production increases, it usually indicates that businesses are thriving, investments are being made, and overall economic activity is expanding. This growth can result from various factors, such as technological advancements, increased labor force participation, or improvements in productivity.

The choice indicating an increase in overall economic indicators does hint at broader economic success, but it may include non-production-related factors like improvements in living standards or changes in specific metrics that do not directly reflect production growth. The definition primarily focuses on tangible outputs rather than aggregate indicators. Elements like a steady decline in unemployment relate to employment levels but do not directly address the growth of production, which is a crucial component of economic progress. Thus, focusing on production over time is the most precise definition of economic growth.