GDP Increase Signals Economic Growth

Steps:

• Review GDP values: assume year 3 exceeds year 1 based on data indication.
• Calculate difference: positive change confirms expansion.
• Define growth: rise in total output over period.
• Conclude: data shows growth occurred, not rate or type.

Why C is correct:

• Economic growth is defined as an increase in real GDP over time, directly shown by higher year 3 value.

Why the others are wrong:

• A: Inflation requires price index changes, absent in GDP data alone.
• B: Rate increase needs multiple periods or percentage calculations, not just two-year comparison.
• D: Per capita growth divides GDP by population, which lacks data here.

Final answer: C