What does annual economic growth refer to?
A) annual increases in GDP
B) annual increases in consumption spending
C) annual increases in investment spending
D) annual increases in Real GDP
E) none of the above

Question

Quizplus · Accepted Answer

Annual economic growth typically refers to the annual increase in Real GDP (gross domestic product), which measures the total economic output of a country in a year, accounting for inflation. It is considered a key indicator of a country's economic performance and overall standard of living. Option A (annual increases in GDP) is similar, but without accounting for inflation it can be misleading. Options B and C (annual increases in consumption spending and investment spending) are components of GDP but do not necessarily reflect overall economic growth. Option E is incorrect as one of the given options must be correct.

What Does Annual Economic Growth Refer To