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.How could one measure have increased 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) The population increased during this time period,so the 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.
E) The population decreased during this time period,so the real GDP per capita data reflect this changE.
Correct Answer:
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