Which of the following is an indicator of econo... - JAMB Economics 2017 Question
Which of the following is an indicator of economic growth?
A
High tax rate
B
Technology development
C
High gross domestic product
D
High interest rate
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Correct Option: B
- Economic growth refers to an increase in the production of goods and services in an economy over a period of time.
- Gross Domestic Product (GDP) is the total market value of all final goods and services produced within a country in a given period. A high GDP indicates that the economy is producing more goods and services, thus signifying economic growth.
- The other options are not direct indicators of economic growth:
- High tax rates can sometimes be associated with economic growth if the revenue is used to invest in infrastructure.
- Technology development is a driver of economic growth, but it is not the indicator itself.
- High-interest rates can sometimes hinder economic growth.
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