Which of the following is an indicator of economic growth?

1. Analyze the question The question asks for an indicator of economic growth. An indicator is something we can measure to tell whether an economy is growing. It is different from a cause or determinant of growth.

2. Explain the concept Economic growth is a sustained increase in an economy's output of goods and services over time. It is usually measured by:

• Gross Domestic Product (GDP), the total value of goods and services produced in a country in a year
• Real GDP growth rate
• GDP per capita (GDP divided by population)

If GDP rises from one year to the next, the economy is growing.

3. Evaluate each option

• A. High tax rate: This is a fiscal policy tool. It does not show that output is rising, and very high taxes can even discourage production.
• B. Technology development: This is a cause or determinant of growth, because better technology raises productivity. It is not a direct measure of growth.
• C. High gross domestic product: GDP is the standard measure of national output, so a high or rising GDP indicates economic growth.
• D. High interest rate: This is a monetary policy outcome. High rates usually discourage borrowing and investment, which tends to slow growth.

4. Answer The correct option is C. High gross domestic product.

5. Exam tip Watch for the words "indicator" and "determinant" in JAMB Economics. Indicators are measurements such as GDP, GNP and per capita income. Determinants or causes are factors such as technology, capital, labour and natural resources. If the question asks "which measures growth," look for GDP or income-related options.