Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Decrease in unemployment rates
B
Increase in inflation rates
C
Reduction in GDP
D
Decline in consumer spending
Understanding the Answer
Let's break down why this is correct
Answer
A key indicator of economic growth in a country is the Gross Domestic Product, or GDP. GDP measures the total value of all goods and services produced within a country over a specific period, usually a year. When GDP increases, it often means that businesses are producing more, people are earning higher incomes, and there are more job opportunities. For example, if a country starts a new technology industry and it grows rapidly, the GDP will rise as more products are created and sold. This growth can lead to better living standards for people in that country.
Detailed Explanation
When more people have jobs, they earn money. Other options are incorrect because Some think rising prices mean growth, but high inflation can hurt people; A smaller GDP means the economy is shrinking.
Key Concepts
economic growth
Topic
Explaining Economic Changes
Difficulty
easy level question
Cognitive Level
understand
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