Final answer:
Learning and growth measure improvements in an economy's production of goods and services, typically gauged through GDP and literacy rates, by accounting for the contributions of physical and human capital deepening as well as technological advancements.
Step-by-step explanation:
Learning and growth are terms often used to measure improvements in an economy. These improvements can be measured through various means such as the increase in the production of goods and services, which is directly related to the economic growth of a country. This growth is identified by a steady rise in Gross Domestic Product (GDP), signaling overall prosperity and betterment in the standard of living. Per capita GDP and literacy rates are often used as measures of development to assess this growth.
Growth accounting studies look at how much physical and human capital deepening as well as technological advancements have contributed to overall growth. Physical capital refers to tangible assets that aid in production, such as machinery and infrastructure, while human capital represents the education and skills of the workforce. The portion of economic growth that is not explained by these measured inputs is called the residual, and this is typically attributed to technological growth. Economists measure these contributions using an aggregate production function, which helps to estimate the influence of these factors on growth.