"Absolute real economic growth" is defined as an increase in __________ from one period to the next.
A) GDP
B) Real GDP
C) Real GDP per person
D) the inflation rate

Question

Quizplus · Accepted Answer

Absolute real economic growth is defined as an increase in real GDP from one period to the next. Real GDP takes into account inflation, so it provides a better measure of economic growth than nominal GDP (which does not account for inflation). Real GDP per person would also be a valid measure of absolute real economic growth as it takes into account changes in both real GDP and population. However, choice C is not specific enough and could be interpreted in different ways. Choice D is incorrect as inflation rate is not a measure of economic growth but rather a measure of changes in price levels.

"Absolute Real Economic Growth" Is Defined as an Increase in __________