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Measurement of economic growth in macroeconomics is generally linked with which of the following?

Answer and explanation

Correct answer: An increase in national output

Economic growth means a sustained increase in the productive capacity and real output of an economy over time. It is commonly assessed through the rise in real national income or real GDP, because real measures remove the effect of price changes. A person’s height, a house’s colour and a shop’s music do not measure the production of the whole economy. Therefore, an increase in national output is the correct macroeconomic indicator.

Related tags

Economic GrowthNational OutputReal GdpMacroeconomicsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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