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According to various research studies, which of the following is an indicator of economic growth?

1) GDP per capita
2) Unemployment rate
3) Inflation rate
4) Interest rates

1 Answer

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Final answer:

GDP per capita is an indicator of economic growth that reflects the total output of goods and services produced by an economy per person. A growth rate of more than 3% is considered good. It serves to compare economic performance and determine the standard of living in a country.

Step-by-step explanation:

According to various research studies, GDP per capita is considered an important indicator of economic growth. Economic growth ultimately determines the prevailing standard of living in a country, and can be measured by the percentage change in real (inflation-adjusted) gross domestic product (GDP). A growth rate of more than 3% is typically considered good, and indicates that the economy is expanding at a healthy pace.



Other measures such as the unemployment rate, inflation rate, and interest rates are also indicators of the economy's condition, but GDP per capita is specifically a measure of economic growth. This represents the dollar value of the total output of goods and services produced by an economy per person. It is a measure that reflects improvements in human capital, physical capital, and technology, and is used to compare the economic performance of different countries or regions over time.

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