Which of the following best describes changes in the average well-being in a country?
A) the growth rate of the unemployed
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 the average well-being in a country are best measured by the growth rate of real GDP per person. Nominal GDP growth rate does not take into account inflation or changes in the population, while the growth rate of the unemployed is not a direct indicator of overall well-being. Real GDP takes into account inflation, but not changes in population, while real GDP per person accounts for both factors and therefore is the best measure of changes in the average well-being in a country.

Which of the Following Best Describes Changes in the Average