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Basic Question 4 of 4

Sustainable growth is measured by the rate of increase in an economy's

A. potential GDP.
B. real GDP.
C. nominal GDP.
Check Answer Previous Q Print

User Contributed Comments 3

User Comment
babycdq not B?. Economy growth is measured by the growth rate of real GDP. This is the definition, isn't it?
choas69 iam as confused as you are. guess its a mistake need confirmation.
choas69 sustainabl economic growth can be described by reference to growth in real GDP and GDP per capita.

to measure the sustainability of economic growth:
growth in potential GDP = growth in labor force x growth in labor productivity.
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes

Barnes

Learning Outcome Statements

describe the relation between the long-run rate of stock market appreciation and the sustainable growth rate of the economy;

explain why potential GDP and its growth rate matter for equity and fixed income investors;

CFA® 2025 Level II Curriculum, Volume 1, Module 9.