Which of the following is an example of the broad economic goal of growth?

• A. An increase in a country's real GDP over time
• B. Ensuring equal distribution of income among all citizens
• C. Reducing the unemployment rate to zero
• D. Maintaining stable prices in the economy

Answer: (A)

Verified step by step guidance

1. Understand the concept of economic growth: Economic growth refers to the increase in the production of goods and services in an economy over a period of time, typically measured by the rise in real Gross Domestic Product (GDP).
2. Identify the broad economic goals: Common broad economic goals include economic growth, income distribution, full employment, and price stability.
3. Analyze each option in relation to these goals: For example, an increase in real GDP over time directly reflects economic growth, while ensuring equal income distribution relates to equity, reducing unemployment relates to full employment, and maintaining stable prices relates to price stability.
4. Match the option that best fits the definition of economic growth: Since economic growth is about increasing output and real GDP, the option mentioning an increase in a country's real GDP over time aligns with this goal.
5. Conclude that the example illustrating the broad economic goal of growth is the increase in a country's real GDP over time, as it directly measures the expansion of economic activity.