Assume the real U.S.GDP in 1929 was $942 billion and the U.S.population was 122 million,and the real U.S.GDP in 1930 was $858 billion and the U.S.population was 123 million.From 1929 to 1930,the per capita real GDP
A)Remained unchanged.
B)Decreased.
C)Increased.
D)Cannot be determined from the information given.

Question

Quizplus · Accepted Answer

To calculate per capita real GDP, we divide the real GDP by the population.

Per capita real GDP in 1929 = $942 billion / 122 million = $7,704.92 
Per capita real GDP in 1930 = $858 billion / 123 million = $6,975.61

Therefore, the per capita real GDP decreased from 1929 to 1930, indicating a decrease in the standard of living of the people. The correct choice is B.

Assume the Real U