What is the measure used to represent economic growth over time?

The correct measure used to represent economic growth over time is Gross Domestic Product (GDP). GDP signifies the total monetary value of all goods and services produced within a country's borders over a specific period, usually annually or quarterly. It effectively captures the economic activity and productivity of a nation, making it a key indicator of overall economic health.

When GDP increases, it suggests that the economy is growing, as more goods and services are being produced and consumed. Conversely, a decline in GDP indicates economic contraction. Because of its comprehensive nature, economists and policymakers rely on GDP to assess economic performance, compare growth rates between different economies, and formulate economic policy.

In contrast, the unemployment rate primarily reflects labor market conditions and does not directly measure the total economic output. The Consumer Price Index (CPI) measures inflation and the cost of living, which provides insights into price changes but does not indicate economic output or growth. Gross National Product (GNP) accounts for the production by a country’s residents regardless of where that production occurs, which can make it less relevant for measuring domestic economic growth compared to GDP.