Q. Which of the following statements best describes “Economic Growth”?
Red Book
Red Book

[A] It is defined as an increase in nominal GDP

[B] It is a sustained increase in real GDP per capita over time.

[C] It refers to any increase in nominal GDP per capita.

[D] It can be defined as an increase in real GDP.

Answer: B
Notes:

An increase GDP per capita is only economic growth if it is 1) adjusted for inflation (“real”), 2) adjusted for population size (“per capita”), and 3) sustained over time.  So the best option is statement b here.

Source- Article

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