(c) Explain how economic growth is measured.

Economic growth is typically measured by the percentage increase in the gross domestic product (GDP) of a country. Here are the steps to measure it:

1. Calculate Gross Domestic Product (GDP): GDP is the total value of all goods and services produced by a country in a specific period. It can be calculated using three methods: the production approach, the income approach, and the expenditure approach.

2. Adjust for Inflation: The GDP calculated in step 1 is known as nominal GDP. However, to accurately measure economic growth, we need to adjust for inflation to get the real GDP. This is because inflation can artificially inflate the GDP figure, making it seem like the economy is growing when it's not.

3. Calculate the Growth Rate: The economic growth rate is calculated by comparing the real GDP of two periods. The formula is: [(Real GDP in year 2 - Real GDP in year 1) / Real GDP in year 1] * 100. This gives the economic growth rate as a percentage.

4. Repeat: This process is repeated for each period for which you want to measure economic growth.

5. Interpret the Results: If the economic growth rate is positive, the economy is growing. If it's negative, the economy is contracting. The larger the percentage, the faster the rate of growth or contraction.

Remember, while GDP is a common measure of economic growth, it's not the only one. Other measures like Gross National Product (GNP), Net National Product (NNP), and changes in the standard of living are also used.