Increases in _____ are considered the best measure of increases in living standards because they measure only increases in production.
A) national wealth
B) consumer spending
C) nominal GDP
D) real GDP

Question

Quizplus · Accepted Answer

Real GDP (Gross Domestic Product) is the preferred measure of economic growth and living standards because it accounts for changes in prices, thus measuring only increases in production. National wealth (A) can be influenced by factors such as the value of natural resources and exchange rates. Consumer spending (B) can increase without any increase in production through borrowed money or savings, and nominal GDP (C) does not account for inflation, which can lead to misleading readings of economic growth.

Increases in _____ Are Considered the Best Measure of Increases