IMPORTANT !!! BENEFICIAL TO EVERYONE !!! Explain Economic Growth and Inflation.

For economic growth,in 1990 to 1997, it has a strong economic growth in Asia, but it did not help forecast the crisis from 1997. Due to the financial storm happened in 1997, the GNP growth fell 2.9 percent in 1998. The GNP means the market value of final goods and services newly produced by domestically owned factors of production. Moreover, it is not only the better way to reflect the economic situation of an economy but also is an important …

…on real income and costs of living. Finally, inflation even affects consumers' confidence and government's tax revenue. Consumers' choice of wealth will be change because people will prefer to hold physical assets such as houses, gold, jewel rather than money because the purchasing power of money drops. And people whose wages rise may suffer the exceed tax allowance as well as fall into a higher tax bracket. As a result, government's tax revenue will increase.