Optimal Growth
Optimal growth refers to the ideal rate at which an economy or organization can expand without causing negative side effects, such as inflation or resource depletion. It involves balancing various factors, including investment, consumption, and technological advancement, to achieve sustainable development.
In the context of economics, optimal growth is often analyzed using models like the Solow Growth Model, which helps understand how capital accumulation, labor force growth, and technological progress contribute to long-term economic performance. Policymakers aim for optimal growth to enhance living standards while ensuring environmental sustainability and social equity.