Real output per capita is calculated by

Question

Quizplus · Accepted Answer

Real output per capita is calculated by dividing real GDP (which adjusts for inflation) by the population, giving an estimate of the average output per person in the economy. Answer A is incorrect because multiplying the population by GDP does not give a measure of output per person. Answer B is incorrect because nominal GDP does not adjust for inflation, so it does not give a true measure of output per person. Answer C is incorrect because dividing the population by nominal GDP does not give a measure of output per person. Answer E is incorrect because dividing the population by real GDP gives the inverse of real output per capita, which is not a useful measure.

Real Output Per Capita Is Calculated by