Economic growth is usually measured in terms of an increase in the real GNP or GDP over time or an increase in income

to increase its overall standard of living and improve the well-being of its citizens. When an economy experiences sustained economic growth, it means that there is an increase in the production of goods and services within the country over time. This can occur as a result of factors such as technological advancements, increased investment in physical and human capital, improved infrastructure, and favorable government policies.

One way to measure economic growth is through the real Gross National Product (GNP) or Gross Domestic Product (GDP). GNP is the total market value of all goods and services produced by a country"s residents, including income earned from abroad. GDP, on the other hand, measures the total market value of all goods and services produced within a country"s borders, regardless of who owns the productive assets.

To measure economic growth, we usually compare the real GNP or GDP across different time periods. The term "real" implies that the figures have been adjusted for inflation, allowing for a more accurate assessment of changes in actual output. By comparing the output level at two different points in time, we can see whether the economy has grown or contracted.

Additionally, economic growth can also be measured in terms of income per capita, which is the average income per person in a given country. This measure takes into account changes in both output and population. If the total output (GNP or GDP) increases at a faster pace than the population growth rate, it means that there is an improvement in average standards of living. This is because there is more output available to be shared among a relatively smaller population.

The importance of economic growth lies in its impact on the overall wealth and well-being of society. When an economy experiences sustained growth, it creates opportunities for individuals and businesses to thrive. It leads to higher employment rates, increased incomes, and improved living standards. Moreover, economic growth provides governments with additional resources that can be allocated to essential public goods and services, such as healthcare, education, infrastructure development, and social welfare programs.

However, it"s important to note that economic growth alone may not guarantee equitable distribution of wealth and benefits. While growth is essential for societal progress, it should be accompanied by policies and mechanisms that ensure the benefits are shared by all members of society. This includes addressing income inequality, promoting inclusive economic opportunities, and safeguarding the environment for sustainable growth.

In conclusion, economic growth is crucial for a society as it results in increased production, higher standards of living, and improved overall well-being. It is measured through indicators such as real GNP or GDP and income per capita. However, it"s important to pursue growth in a manner that promotes equality and sustainability to ensure long-term prosperity for all.