When measuring economic growth, economists typically focus on per capita real GDP in order to account for variations in the:

Question

Quizplus · Accepted Answer

Per capita real GDP is calculated by dividing the total real GDP of a country by its population. By focusing on per capita real GDP, economists can account for variations in the size of the population (answer A) and also adjust for changes in the price level (answer B). This allows for a more accurate comparison of economic growth across different countries and over time. The quality of goods and services (answer C) is not directly factored into the calculation of per capita real GDP, but improvements in quality can indirectly contribute to economic growth through increased productivity and efficiency.

When Measuring Economic Growth, Economists Typically Focus on Per Capita