When economists measure economic growth, they often use:

Question

Quizplus · Accepted Answer

Real GDP is a better measure of economic growth compared to nominal GDP because it takes into consideration the effects of inflation on the economy. Nominal GDP only reflects the total value of goods and services produced in a given period, but it does not account for changes in the price level. Real GDP adjusts for inflation, allowing for a more accurate measurement of changes in economic output over time. The inflation rate and unemployment rate can provide important information about the state of the economy, but they are not direct measures of economic growth.

When Economists Measure Economic Growth, They Often Use