Economic Growth
Increase in real GDP; expansion of economy.
Formula
GDP Growth Rate = ((GDP Current Year − GDP Previous Year) ÷ GDP Previous Year) × 100
Real World
During China's rapid economic growth in the 2000s, Apple expanded aggressively into the Chinese market, capitalising on rising household incomes and surging consumer demand for smartphones.
Exam Focus
Link economic growth to a specific business response (e.g. capacity expansion, new market entry) rather than just stating 'demand increases'.
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