Even though it is not a perfect measure, economists can use real GDP to
i. compare how standards of living in China have changed over the past 10 years.
ii. look at the length of recessions and expansions in Australia.
iii. compare the standard of living in China versus the standard of living in Vietnam.
A) i and ii
B) ii only
C) i, ii and iii
D) ii and iii
E) i and iii

Question

Quizplus · Accepted Answer

Real GDP is used to measure and compare the economic performance of a country over time (i), analyze the duration of economic cycles such as recessions and expansions (ii), and compare the economic output and thus infer aspects of the standard of living between different countries (iii), despite its limitations in capturing the full scope of an economy's health or the well-being of its citizens.

Even Though It Is Not a Perfect Measure, Economists Can