Question

Which of these is an indicator of increased economic growth in a nation? A) increased job satisfaction B) increased aggregate demand C) increased welfare applications D) increased transfer payments by the government

Answer 1

B increased aggregate demand.

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Answer 2

The answer is; B

Aggregate demand in the total demand by the country’s population of finished good and services in the market. This can be determined by the amount of money being exchanged in the market and is a good index for measuring GDP. An increase in the aggregate demand means that the purchasing power of the population is increasing and hence the population has more disposable income – indicating economic growth.