Which term measures the change in a country's GDP over time, with growth indicated when GDP increases across two consecutive quarters?

Which term measures the change in a country's GDP over time, with growth indicated when GDP increases across two consecutive quarters?

• A. Ethics
• B. Balance of Payments
• C. Exchange rate
• D. Economic growth

Answer: (D)

Measuring how GDP changes over time is economic growth. When real GDP rises from one quarter to the next for two consecutive quarters, the economy is expanding, which signals economic growth. The other terms don’t describe changes in a country’s output: ethics relates to moral principles, the balance of payments tracks all international transactions, and the exchange rate is the value of one currency in terms of another. So the best fit is economic growth, capturing the overall rise in a country’s output over time (often measured quarterly or annually using real GDP).

Measuring how GDP changes over time is economic growth. When real GDP rises from one quarter to the next for two consecutive quarters, the economy is expanding, which signals economic growth. The other terms don’t describe changes in a country’s output: ethics relates to moral principles, the balance of payments tracks all international transactions, and the exchange rate is the value of one currency in terms of another. So the best fit is economic growth, capturing the overall rise in a country’s output over time (often measured quarterly or annually using real GDP).