Economic growth is defined as the way that the real income of an economy increases over the time. Economic growth is calculated as a percentage rate of growth per quarter or per year. A more technical definition would go into the way that Economic Growth is measured - usually in terms of the Gross Domestic Product - the sum total of the value of a country's output over the course of a year.
             U.S. economy has changed drastically between 1929 and 1934. The largest component of real GDP, Personal Consumption Expenditures (PCE), decreased by 3.8% and the Gross Private Domestic Investment (GPDI) also decreased by 5.0% over the period. The real GDP decreased by 7.3% over the period even though there was steady growth in Government Consumption Expenditures and Gross Investment (GCEGI).
             Beginning with the "New Deal" in the 1930s, the Federal Government came to play much larger role in American life. GCEGI has grown over the years, especially starting in the 1930s in actual dollars and in proportion to the economy. GCEGI, which totaled less than 180 billion in 1937, went up to nearly 790 billion in 1942 and to over 1,300 billion by 1944. Thus began the ever increasing the real GDP of the United States. There was steady growth in PCE between 1938 and 1944. At the same time, the GCEGI have risen, standing at about 27.75% in 1942 and 18.59% in 1943, respectively.
             There are drastic U.S. economy changes again in the 1990s and 2000s. U.S. economy experienced that the real income of an economy increases between 1993 and 2000. Every component of real GDP, PCE, GPDI, GCEGI, has increased gradually each year over the period. Data from the Bureau of Economic Analysis (BEA) estimated largest component of real GDP, PCE, has increased from 5,027 billion to 6,703 billion (about 2.7% each quarter). GPDI and GCEGI have risen, about 1.4% each quarter and about 0.25% each quarter, respectively. Many new jobs were created and thus thousands ...