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

## Step 1<br />Economic 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). <br /><br />## Step 2<br />Real 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.<br /><br />## Step 3<br />Economic 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.