An economy experiences economic growth whenever

Question

Quizplus · Accepted Answer

Economic growth is generally measured by the increase in real GDP over time, so option B is the correct answer. Nominal GDP can increase simply due to price inflation, which does not indicate economic growth. Base-year GDP is a reference point used to measure changes in real GDP, so an increase in base-year GDP doesn't necessarily indicate economic growth. While a decrease in the unemployment rate can be a positive indicator for a growing economy, it doesn't necessarily mean that economic growth has occurred.

An Economy Experiences Economic Growth Whenever