Answer :
Real GDP is used to measure the macroeconomic goal of Economic Growth. The correct option is B).
In economics, economic growth refers to the increase in the market value of the goods and services produced by an economy over time, and it indicates how a country is developing its economy. Long-run economic growth is crucial as it reflects sustained improvements and is measured by the percentage rate increase in real GDP.
Real GDP stands for real gross domestic product and represents the total value of all final goods and services produced within a country, in a given period of time, adjusted for price changes. The use of real GDP eliminates the effects of inflation or deflation and provides a more accurate measure of economic performance.
The U.S., with a mixed economy, aims for a stable GDP growth rate, balancing moderate unemployment with high levels of research and capital investment for continuous economic development.
Furthermore, real GDP serves as a differentiator between short-term fluctuations known as the business cycle and the long-term trajectory of the economy.
A thriving economy experiences a substantial GDP growth rate, around four percent a year, while a stagnant economy may grow at less than one percent, potentially leading to high unemployment and low productivity. Thus, option B) is correct.
