Which of the Following Are Required for Economic Growth

question 104

Multiple Choice

Which of the following are required for economic growth?
I.more goods and services produced per hour of work
Ii.an increase in the average hours of labor per person
Iii.an increase in prices

• A)i and iii
• B)i and ii
• C)ii and iii
• D)i only
• E)ii only

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Definitions:

Gross Domestic Product

The overall market or monetary value of all completed goods and services that have been created inside the confines of a nation during a defined timeframe.

Market Value

The current price at which an asset or service can be bought or sold in the marketplace.

Real GDP

A measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced in a given year.

GDP Deflator

An economic metric that converts output measured at current prices into constant-dollar terms to remove the effect of inflation.