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Economic‌‌growth‌‌is‌‌a‌‌condition‌‌where‌‌it‌‌shows‌‌that‌‌the‌‌economy‌‌is‌‌growing.‌‌It‌‌is‌‌usually‌‌  
represented‌‌by‌‌the‌‌increase‌‌of‌‌output‌‌or‌‌nominal‌‌GDP.‌‌Economic‌‌growth‌‌is‌‌determined‌‌by‌‌the‌‌  
equilibrium‌‌price‌‌and‌‌qty‌‌where‌‌aggregate‌‌demand‌‌meets‌‌with‌‌aggregate‌‌supply.‌‌    ‌
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Aggregate‌‌demand‌‌consists‌‌of‌‌lists‌‌of‌‌expenditures-‌‌consumers,‌‌investments,‌‌government,‌‌and‌‌  
net‌‌exports.‌‌Government‌‌expenditures‌‌are‌‌the‌‌spendings‌‌spent‌‌by‌‌the‌‌government‌‌to‌‌improve‌ 
the‌‌economy‌‌and‌‌the‌‌welfare‌‌of‌‌the‌‌people.‌‌For‌‌instance,‌‌building‌‌infrastructures‌‌such‌‌as‌‌roads‌‌  
and‌‌housings,‌‌schools,‌‌healthcare‌‌systems,‌‌and‌‌subsidies‌‌to‌‌promote‌‌the‌‌economy.‌‌Those‌‌  
activities‌‌will‌‌provide‌‌jobs,‌‌increase‌‌income‌‌and‌‌spending‌‌ability,‌‌and‌‌much‌‌more.‌‌So,‌‌it‌‌will‌‌drive‌‌  
the‌‌demand‌‌in‌‌the‌‌economy‌‌which‌‌will‌‌shift‌‌the‌‌aggregate‌‌demand‌‌to‌‌the‌‌right.‌‌    ‌
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As‌‌shown‌‌in‌‌the‌‌graph,‌‌as‌‌AD1‌‌shifts‌‌to‌‌AD2,‌‌price‌‌level,‌‌and‌‌  
real‌‌GDP‌‌increase.‌‌This‌‌indicates‌‌that‌‌the‌‌economy‌‌is‌‌  
growing.‌‌    ‌
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Whereas,‌‌when‌‌the‌‌government‌‌spends‌‌less‌‌money‌‌on‌‌the‌‌  
economy,‌‌AD‌‌will‌‌contract.‌‌Which‌‌will‌‌cause‌‌AD‌‌to‌‌shift‌‌to‌‌the‌‌  
left‌‌and‌‌reduce‌‌the‌‌price‌‌level‌‌and‌‌real‌‌GDP.‌‌Indicating‌‌the‌‌
 
economy‌‌slowed‌‌down.‌‌This‌‌usually‌‌happens‌‌during‌‌a ‌‌
recession‌‌where‌‌people‌‌are‌‌not‌‌spending‌‌as‌‌much.‌  ‌
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So,‌‌government‌‌spending‌‌will‌‌affect‌‌economic‌‌growth.‌‌  
However,‌‌it‌‌is‌‌important‌‌to‌‌note‌‌that‌‌AD‌‌is‌‌derived‌‌from‌‌consumers’‌‌consumption,‌‌firms’‌‌  
investments,‌‌and‌‌net‌‌exports‌‌too.‌‌In‌‌addition,‌‌how‌‌the‌‌aggregate‌‌supply‌‌change‌‌will‌‌also‌‌affect‌‌  
economic‌‌growth‌‌as‌‌well.‌  ‌