Economic growth is measured by the percentage change in:
A) potential nominal GDP.
B) structural unemployment.
C) the rule of 72.
D) potential real GDP (LRAS).

Question

Economic growth is measured by the percentage change in:
A) ​potential nominal GDP.
B) ​structural unemployment.
C) ​the rule of 72.
D) ​ potential real GDP (LRAS).​

Quizplus · Accepted Answer

Economic growth is typically measured by the percentage change in potential real GDP, which represents the maximum level of output that an economy can sustain in the long run. This measure captures both changes in the quantity of goods and services produced by an economy and changes in the economy's productive capacity over time. Potential real GDP is often used as a benchmark for economic performance because it reflects the economy's ability to generate income, provide employment opportunities, and support standards of living for its citizens. Therefore, option D is the best choice.

Economic Growth Is Measured by the Percentage Change In