Which of the following best represents economic growth?

Question

Quizplus · Accepted Answer

Economic growth is best represented by an increase in per capita real GDP, as this measures the amount of goods and services that an average person in the economy can actually afford to purchase with their income. An increase in per capita nominal GDP, which only measures the total income of the economy divided by the population, may not indicate a true increase in economic well-being if it is due solely to inflation. An increase in real GDP without accounting for population growth may not reflect an increase in average living standards either.

Which of the Following Best Represents Economic Growth