Real GDP per person is calculated as
A) real GDP divided by the number of people in the country.
B) the number of people in the country divided by real GDP.
C) nominal GDP per person divided by real GDP.
D) real GDP per person divided by nominal GDP.
E) real GDP multiplied by the number of people in the country.

Question

Quizplus · Accepted Answer

Real GDP per person is calculated by taking the real GDP and dividing it by the number of people in the country. This gives a measure of the average economic output per person in the country, adjusted for changes in prices over time. Option A correctly reflects this calculation. Option B has the variables in the wrong order, while option C and D involve using nominal GDP, which does not take into account changes in prices. Option E involves multiplying two variables rather than dividing them, and therefore does not give a measure of output per person.

Real GDP Per Person Is Calculated as