Economic growth refers to an

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Quizplus · Accepted Answer

Economic growth refers to an increase in real GDP, which measures the total value of goods and services produced in an economy adjusted for inflation. This increase in output signals expansion and a healthy economy. Expansionary periods of the business cycle refer to a specific phase in the overall economic cycle, whereas economic growth can occur during any phase of the cycle. An increase in nominal GDP, which measures the total value of goods and services produced in an economy without adjusting for inflation, may not necessarily indicate true economic growth. However, an increase in per capita nominal GDP and an increase in the standard of living can both be outcomes of real economic growth.

Economic Growth Refers to an