Economic growth is defined at the rate of change in the Per Capita GDP. Positive economic growth shows an outward shift in the economy's Production Possibilities Curve.

Many people think this is an indicator of a nation's standard of living, however, a positive rate of economic growth does not necessarily impact said nation's living standards because it does not take into account how the extra goods and services are distributed among the population, as well as the fact that it ignores other determinants such as leisure time.