Economic growth can be defined as
A) the rate of growth in the productivity of labor.
B) the rate of growth in the productivity of capital.
C) the rate of growth of labor plus the rate of depreciation of capital.
D) the rate of growth of labor plus the rate of growth of capital plus the rate of growth in the productivity of labor and capital.

Question

Quizplus · Accepted Answer

Economic growth is measured by the rate of growth in output (GDP) over a period of time. This can be due to an increase in either labor or capital or the productivity of both. Therefore, the rate of growth of labor and capital, along with the rate of growth in the productivity of both, is the best way to measure economic growth. Option D includes all these factors. Option A and B only consider the productivity of either labor or capital, while option C does not include the rate of growth in capital.

Economic Growth Can Be Defined as