Which of the following is the most important variable for judging an economy's long-run performance?
A)growth in nominal GDP
B)growth in real GDP
C)growth in real GDP per capita
D)growth in potential GDP
E)growth in the capital stock

Question

Quizplus · Accepted Answer

Growth in real GDP per capita is the most important variable for judging an economy's long-run performance because it measures the standard of living for the average person in the economy. This takes into account population growth and inflation, which are not considered in nominal GDP or real GDP alone. Growth in potential GDP and the capital stock are also important factors, but they do not directly measure the well-being of individuals in the economy.

Which of the Following Is the Most Important Variable for Judging