Economic growth is described as:

Prepare for UCF's ECO2013 Principles of Macroeconomics Exam 3. Study smart with flashcards, multiple choice questions, and detailed explanations. Get exam-ready today!

Economic growth is defined as an increase in the production of goods and services over time, typically measured by the rise in a country's gross domestic product (GDP). This growth indicates a healthier economy as it demonstrates that businesses are producing more, creating jobs, and contributing to overall prosperity. As production increases, it suggests that resources are being utilized effectively, leading to improvements in standards of living and economic well-being for the populace.

The concept captures the long-term upward trend in the output of goods and services, reflecting improvements in productivity, technology, and overall economic activity. This phenomenon is vital for development as it can lead to more investments, higher wages, and the ability to support larger populations.

The other options, while related to economic conditions, do not encapsulate the essence of economic growth itself. The decrease in unemployment rates is an indicator of economic health but does not directly represent growth. A consistent rise in consumer prices relates to inflation rather than growth. Similarly, a temporary expansion of the market describes a short-term phase rather than sustained growth over time.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy