CFA Practice Question

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CFA Practice Question

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

A. potential GDP
B. real GDP
C. nominal GDP
Correct Answer: A

This is the economy's productive capacity.

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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