ACCA Applied Knowledge · Business and Technology · Macroeconomic factors
Which of the following is the standard measure used to assess a country's economic growth over a period?
Economic growth is measured by the percentage change in real GDP. Real GDP strips out the effect of price changes, so it shows the actual increase in output of goods and services. Inflation, employment and trade balances are different macroeconomic indicators.
- AThe percentage change in real gross domestic productCorrect
- BThe change in the country's balance of payments surplus
- CThe percentage change in the general price level
- DThe change in the number of people in employment
Explanation
Economic growth is measured as the percentage increase in real GDP, meaning output adjusted to remove the effect of price changes. Price level changes measure inflation, not growth, and employment and trade balances are separate indicators.
Did you get it right without looking?
One question tells you little. A timed set on Macroeconomic factors shows your real accuracy, how long you take and where you lose marks.
More Macroeconomic factors questions
- A government reduces the corporate tax rate and cuts the marginal rate of income tax on higher earners, arguing that this will encourage ent…
- A government wants to protect a domestic steel industry from cheaper foreign competition. It imposes a limit on the physical quantity of ste…
- A town's main employer, a coal mine, closes permanently because the industry has declined. Former miners have no skills for the new software…
- A manufacturer of luxury yachts finds that its sales fall sharply during a downturn, far more than sales of basic groceries. Which descripti…
- A country's real GDP grew by 3% in a year in which its population grew by 4%. Which statement is most accurate?
- A government privatises a state-owned rail operator by selling it to private investors. Which of the following is the most likely reason for…