ECONOMICS
ECONOMIC GROWTH
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Increased financial rewards would be included in which measure of economic growth?
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Real Income/GDP
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Productive capacity
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Net social welfare
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None of the above
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Explanation:
Detailed explanation-1: -The most common way to measure the economy is real gross domestic product, or real GDP. GDP is the total value of everything-goods and services-produced in our economy. The word “real” means that the total has been adjusted to remove the effects of inflation.
Detailed explanation-2: -Answer and Explanation: The income approach uses the income earned by the factor of production a year. In this method, GDP includes wages, profit, and rent.
Detailed explanation-3: -Economic growth (GDP growth) refers to the percent change in real GDP, which corrects the nominal GDP figure for inflation. Real GDP is therefore also referred to as inflation-adjusted GDP or GDP in constant prices.
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