Which of the following best describes changes in the average well-being in a country?
A)the growth rate of government transfers
B)the growth rate of nominal GDP
C)the growth rate of real GDP
D)the growth rate of real GDP per person

Question

Quizplus · Accepted Answer

Changes in real GDP per person are a better measure of changes in average well-being in a country than nominal GDP or government transfers, as the latter two measures do not account for changes in population size or changes in the cost of living. Real GDP per person, on the other hand, adjusts for inflation and reflects changes in the economy on a per capita basis, giving a more accurate picture of changes in average well-being.

Which of the Following Best Describes Changes in the Average