5 Questions
What is economic growth?
Economic growth is the increase or improvement in the inflation-adjusted market value of the goods and services produced by an economy in a financial year.
How is economic growth measured?
Economic growth is measured as the annual percent change of gross domestic product (GDP).
Why is growth usually calculated in real terms?
Growth is usually calculated in real terms to eliminate the distorting effect of inflation on the prices of goods produced.
What does the 'rate of economic growth' refer to?
The 'rate of economic growth' refers to the geometric annual rate of growth.
What is the advantage of using GDP to measure economic growth?
Using GDP to measure economic growth allows for comparisons between countries using the ratio of GDP to population (per-capita income).
Test your knowledge on economic growth with this quiz! Learn about the measurement and factors influencing economic growth, and understand how it affects the market value of goods and services produced by an economy.
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