Real GDP was $4,719 billion in Year 1 and $4,848 billion in Year 2.In contrast, real GDP per capita in Year 1 was $19,261, but in Year 2 it was only $19,162.Why did one measure increase while the other measure decreased?
A)Real GDP indicates the level of industrial production and provides a measure of the economic strength of the nation; it is the only valid measure of economic growth.
B)Inflation occurred during this period; therefore the two measures are not comparable.
C)Population increased during this time period so real GDP per capita data reflect this change.
D)Real GDP per capita measures changes in labour productivity that are not captured by a simple measure like real GDP.

Question

Quizplus · Accepted Answer

Population increased during this time period, which led to a decrease in real GDP per capita despite the increase in total real GDP.

Real GDP Was $4,719 Billion in Year 1 and $4,848