What are indicators that economists use to measure how an economy grows? Select all that apply.

Choices:

A) monitoring election results

B) measuring what the economy produces

C) monitoring the popularity of different music groups

D) studying the economy of another country

E) tracking how many workers have jobs

The best answers are: letters B, D and E.

Economic growth is defines as an increase in the capacity of an economy to produce goods and services, compared from one period of time to another. It can be measured in nominal terms, which include inflation, or in real terms, which are adjusted for inflation. For comparing one country's economic growth to another, GDP or GNP per capita should be used as these take into account population differences between countries.