Which of the following best defines economic growth? An increase in a country's population A sustained increase in the real GDP of a country A reduction in unemployment A balanced government budget

Question

Which of the following best defines economic growth? An increase in a country's population A sustained increase in the real GDP of a country A reduction in unemployment A balanced government budget

Answer 1

## Step 1Economic growth is a term used to describe the increase in the production of goods and services over a specific period. This is usually measured by the increase in real Gross Domestic Product (GDP). ## Step 2Real GDP is the GDP adjusted for inflation. This means it takes into account the changes in the price level of goods and services over time.## Step 3Economic growth is not about an increase in population, a reduction in unemployment, or a balanced government budget. These factors can influence economic growth, but they are not the definition of economic growth.

Question

Which of the following best defines economic growth? An increase in a country's population A sustained increase in the real GDP of a country A reduction in unemployment A balanced government budget

Solution

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