When economists talk about growth in the economy, how do they measure that growth?
A) with the absolute change in nominal GDP
B) with the percentage change in real GDP
C) with the absolute change in real GDP
D) with the percentage change in nominal GDP

Question

Quizplus · Accepted Answer

Economists typically measure growth in the economy using the percentage change in real GDP. Real GDP takes into account inflation, whereas nominal GDP does not, so measuring growth based on the percentage change in real GDP gives a more accurate picture of how much the economy is actually growing.

When Economists Talk About Growth in the Economy, How Do