Which of the following is not an indicator of economic growth?

1. Analyze the question You are asked to find the option that is NOT an indicator of economic growth. Look for the item that does not signal a growing economy, or that signals the opposite.

2. Explain the concept Economic growth is a sustained increase in a country's output of goods and services over time. Common indicators include:

• GDP/GNP: total value of output. Rising GDP means growth.
• Price indices such as CPI and PPI: they track price levels and are used in macroeconomic analysis. They help measure inflation, and they are used to adjust nominal GDP into real GDP, which is how growth is properly measured.
• Employment levels and income per capita: growth normally goes with more jobs, higher incomes and rising living standards.

3. Step-by-step solution

• A. CPI (Consumer Price Index): a macroeconomic indicator used to track price changes and to compute real growth. It is treated as an indicator.
• B. PPI (Producer Price Index): tracks prices at the producer level. It is also a standard economic indicator.
• C. GDP (Gross Domestic Product): the most direct measure of economic growth.
• D. High level of unemployment: this shows that resources, especially labour, are idle. It signals economic weakness or stagnation, not growth. Growing economies tend to create jobs and reduce unemployment.

4. Answer The option that is not an indicator of economic growth is D. High Level of Unemployment.

5. Exam tip In "which is NOT an indicator" questions, look for the option that describes something negative or contrary to growth, such as high unemployment, falling output or falling income. Remember: growth means more output and more jobs, so high unemployment points the opposite way.