"Economic growth" has occurred if
A) inflation rate between this year and last year is zero or less.
B) GDP this year exceeds the Real GDP this year.
C) unemployment rate this year is above the natural rate of unemployment.
D) Real GDP this year is greater than Real GDP last year.

Question

Quizplus · Accepted Answer

Economic growth is measured by an increase in real GDP over time. Choice A is incorrect as zero or negative inflation rate does not necessarily indicate economic growth. Choice B is incorrect as it does not take into account inflation, which may result in nominal GDP increasing without actual economic growth. Choice C is incorrect as unemployment rate above the natural rate may indicate a recession rather than economic growth.

"Economic Growth" Has Occurred If