Question

Economic growth means that _____. 1. consumers are spending more money 2. governments are spending less money 3. producers are providing fewer services

Answer 1

1. consumers are spending more money

Answer 2

Economic growth means that consumers are spending more money.

If consumers are spending more money it means that the overall income has increased. When the people's income increases, the demand increases which in return encourages investment and production, increasing supply. Economic growth is often measured using a country's GDP (gross domestic product) and GDP per capita over a period of time. A country's GDP measures the value of the internal production of a country.