When measuring economic growth, economists typically focus on per capita real GDP in order to account for variations in the:

Question

Quizplus · Accepted Answer

Per capita real GDP takes into account the size of the population, which affects the total level of production, as well as the price level, which affects the purchasing power of individuals. By focusing on per capita real GDP, economists are able to compare the standard of living across different countries or time periods. However, per capita real GDP does not account for the quality of goods and services produced, which is an important consideration for assessing economic wellbeing.

When Measuring Economic Growth, Economists Typically Focus on Per Capita