What does economic growth typically refer to?

Economic growth typically refers to an increase in the production of goods and services in an economy over a specific period, usually measured by the rise in gross domestic product (GDP). It indicates the economic health of a country and its ability to provide more goods and services, thereby improving the standard of living for its citizens.

The focus on economic growth is essential because it reflects a robust economy, generating employment opportunities, increasing income levels, and allowing for investment in public services and infrastructure. In contrast, the other options relate to specific aspects of economic performance or policy. Fiscal policy concerns government spending and taxations, balance of payment discusses the financial transactions of a country and its economic relationships with the rest of the world, and trade deficit refers to the situation where imports exceed exports, which can impact economic growth. Thus, economic growth is the overarching concept that encompasses the health and expansion of an economy, making it the correct choice.