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.
Frequently asked questions
What is the correct answer to this question?
An increase in national output
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
