Economic growth is the increase in the inflation-adjusted
market value of the goods and services produced by an
economy over time. It is conventionally measured as the percent rate of increase in real
gross domestic product, or real GDP. Of more importance is the growth of the ratio of GDP to population (GDP
per capita, which is also called
per capita income). An increase in growth caused by more efficient use of inputs (such as
physical capital,
population, or territory) is referred to as
intensive growth. GDP growth caused only by increases in the amount of inputs available for use is called
extensive growth.