Which of the following is the best indicator of a nation's overall economic performance?

Question

Quizplus · Accepted Answer

Real GDP (Gross Domestic Product) is the best indicator of a nation's overall economic performance as it measures the total value of all goods and services produced within a country's borders in a given time period, adjusted for inflation. Real GDP reflects both the size and growth rate of an economy, and is widely used to compare different countries' economic performance. Real disposable personal income (B) only measures the income available to consumers after taxes and inflation, while nominal GDP (C) is not adjusted for inflation and can give misleading results. The value of capital stock (D) measures the value of a nation's physical assets, but it does not capture the full picture of economic activity, such as the value of services produced.

Which of the Following Is the Best Indicator of a Nation's