Which of the following statements is not correct?
A)Economic growth is best measured by the annual percentage change in nominal GDP per capita.
B)An economy producing along the production possibilities curve is operating at its potential output.
C)Economic growth is a crucial determinant of people's well-being.
D)If the quality of labor improves, an economy's production possibilities curve will shift outward.

Question

Which of the following statements is not correct?
A)​Economic growth is best measured by the annual percentage change in nominal GDP per capita.
B)​An economy producing along the production possibilities curve is operating at its potential output.
C)​Economic growth is a crucial determinant of people's well-being.
D)​If the quality of labor improves, an economy's production possibilities curve will shift outward.

Quizplus · Accepted Answer

Economic growth is best measured by the annual percentage change in real GDP per capita, not nominal GDP per capita. Nominal GDP per capita may not reflect the effects of inflation on the purchasing power of individuals. Real GDP adjusts for inflation and provides a more accurate measure of a country's economic growth.

Which of the Following Statements Is Not Correct