Answer to Question #135090 in Macroeconomics for December

Question

Which one of the following best describes economic growth?
[1] an increase in real GDP per capita over time, where GDP per capita is real output divided
by population
[2] an increase in the value of final goods and services produced within the borders of the
country in a one-year period
[3] a sustained increase in nominal GDP occurring over time
[4] an absolute change of GDP or GDP per capita over time

Answer 1

[1] An increase in real GDP per capita over time, where GDP per capita is real output divided by population.