If real GDP per capita measured in 2009 dollars was $6,000 in 1950 and $48,000 in 2016,we would say that in the year 2016,the average American could buy ________ times as many goods and services as the average American in 1950.

Question

Quizplus · Accepted Answer

To calculate the number of times as many goods and services the average American could buy in 2016 compared to 1950, we divide the real GDP per capita in 2016 by the real GDP per capita in 1950.

$48,000/$6,000 = 8

Therefore, the average American could buy 8 times as many goods and services in 2016 as they could in 1950.

If Real GDP Per Capita Measured in 2009 Dollars Was