Answer to Question #218368 in Economics for Andie

Question

4.18  Which of the following is used to measure economic growth?

 

 [1]     CPI

[2]     PPI

[3]     real GDP

[4]     unemployment rate

Answer 1

Economists track real gross domestic product (GDP) to determine the rate that an economy is growing without any of the distorting effects of inflation. The real GDP number allows them to measure growth more accurately.

So, the correct answer is [3].