Increases in productivity per person lead to increases in per capita income, which we call:

Question

Quizplus · Accepted Answer

Economic growth refers to the sustained increase in the amount of goods and services produced per capita. Increases in productivity per person lead to increases in per capita income, which in turn leads to economic growth. Therefore, A is the correct choice. B is a measure of the size of the economy relative to the population, C is a price index measuring the level of prices in an economy, and D is not a commonly used term.

Increases in Productivity Per Person Lead to Increases in Per