Economic growth is best measured by changes in
A) nominal GDP.
B) real GDP.
C) the inflation rate.
D) the unemployment rate.
E) the number of jobs.

Question

Quizplus · Accepted Answer

Real GDP is a better measure of economic growth than nominal GDP because it accounts for inflation. This means that real GDP reflects the actual increase in goods and services produced in an economy. Changes in the inflation rate, unemployment rate, and number of jobs can all be indicators of economic health, but they are not direct measures of economic growth.

Economic Growth Is Best Measured by Changes in