ECN 204 Chapter 6: ECN 204 Chapter 6 Notes.docx

Economic growth is measured by the annual percentage increase in a nations level of___.

under what circumstances do rates of economic growth understate the growth of economic well-being?

A. Economic growth has occurred because of the increased length of the workweek.
B. Product quality has improved.
C. Air quality has declined as real GDP has increased.
D. The population has grown faster than real output.

Which of the following is true?
A) The GDP gap is the difference between full employment real GDP and actual real GDP.
B) We desire economic growth because it increases the nation's real GDP.
C) Economic growth is measured by the annual percentage increase in a nation's real GDP.
D) Discouraged workers are a reason critics say the unemployed rate is understated.
E) All above.