IB Business and Management Standard Level (SL) Practice Exam

Economic growth is the measure of how a country’s GDP changes over time. GDP represents the total value of goods and services produced, and when GDP rises from one quarter to the next and again the following quarter, the economy is expanding. This two-quarter growth pattern is a common shorthand for indicating positive growth. The other concepts don’t track GDP: ethics is about moral principles, the exchange rate is the price of one currency in terms of another, and the balance of payments records international transactions. So the concept that best fits the idea of measuring changes in GDP over time and signaling growth is economic growth.