Question

How is economic growth rate calculated ?

• A. By dividing national income by population.
• B. By comparing the increase in national income from the previous year to the current year.
• C. By measuring the rate of unemployment.
• D. By assessing the improvement in the standard of living.

Answer 1

Answer:

B. By comparing the increase in national income from the previous year to the current year.

ECONOMIC GROWTH RATE

• Now let us see how economic growth can be calculated.

• A measure called economic growth rate is used for this.

• Economic growth rate is the rate of increase in the national income during the current year as compared to the previous year