Real GDP per capita is calculated as the total
A) nominal GDP divided by the population.
B) real GDP divided by the nominal GDP.
C) real GDP divided by the population.
D) real GDP in a given year.

Question

Quizplus · Accepted Answer

Real GDP per capita is calculated as the real GDP divided by the population. This measure takes into account both changes in the overall economy and changes in population growth, providing a more accurate representation of the standard of living for individuals in a given country or region. Option A is incorrect because using nominal GDP would not account for changes in the general price level. Option B is incorrect because it does not account for changes in the population. Option D is incorrect because it does not take population into account.

Real GDP Per Capita Is Calculated as the Total