Which of the following is considered as a good indicator of economic growth by the economists?

Steady increase in Gross Domestic Product

The correct answer is Option 1: Steady increase in Gross Domestic Product

Growth: It refers to increase in the country’s capacity to produce the output of goods and services within the country. It implies either a larger stock of productive capital, or a larger size of supporting services like transport and banking, or an increase in the efficiency of productive capital and services. A good indicator of economic growth, in the language of economics, is steady increase in the Gross Domestic Product (GDP). The GDP is the market value of all the final goods and services produced in the country during a year.

While per capita income is also an important indicator of economic growth and standard of living, GDP measures the overall economic activity and output of a country. The happiness index is not a direct indicator of economic growth.