What is the primary focus of economic growth measures?

• A. Living standards
• B. Health outcomes
• C. Real GDP over time
• D. Inequality

Answer: (C)

Growth measures focus on how much an economy’s output changes over time, which is captured by real GDP after removing price changes. The main idea is to track whether total production is rising or falling across periods, showing the economy’s expansion or contraction. Real GDP over time is the best way to summarize this growth because it directly measures the quantity of goods and services produced in the economy as prices change. Living standards, health outcomes, and inequality are important welfare-related outcomes that growth can influence, but they are not the primary metric used to gauge economic growth itself.