Comparing two countries GDP over time is likely to be misleading if one wants to determine whether standards of living are better in one country because
A)the figures need to be adjusted for different types of currency.
B)the figures need to be adjusted for price changes and population differences.
C)the figures need to be adjusted to account for production differences.
D)NDP instead of GDP should be used.

Question

Quizplus · Accepted Answer

GDP figures can be misleading if they do not take into account price changes over time and population differences between countries. Adjusting the figures for these factors with methods like Purchasing Power Parity (PPP) can provide a more accurate comparison of living standards between countries. Adjusting for production differences can also be important, but it may not be as critical as adjusting for price and population differences in determining living standards. NDP may provide a more accurate measurement of actual living standards because it takes into account depreciation of capital goods, but it is not the only factor that needs to be considered.

Comparing Two Countries GDP Over Time Is Likely to Be