Economic growth is

Question

Economic growth is

Quizplus · Accepted Answer

Economic growth is usually measured as a sustained increase in real GDP over a given period of time. Real GDP is adjusted for inflation, which means that the increase in output reflects true expansion of production possibilities as opposed to price increases. Option A is incorrect because it refers to nominal GDP rather than real GDP. Option B is incorrect because consumption expenditure is not a measure of production possibilities. Option C is incorrect because economic growth does not always lead to rising prices. Option D is incorrect because real GDP per capita multiplied by 70 is a rough estimate of the number of years it takes for real GDP per capita to double, not a measure of economic growth.

Economic Growth Is