A nation's standard of living is best measured by its
A)real GDP.
B)real GDP per person.
C)nominal GDP.
D)nominal GDP per person.

Question

Quizplus · Accepted Answer

Real GDP per person takes into account the size of a country's economy (real GDP) as well as its population. This provides a more accurate measure of the overall standard of living as it reflects the amount of goods and services produced per person, taking into account differences in population sizes. Nominal GDP (choices A and D) does not adjust for inflation, which can distort the true value of a country's output.

A Nation's Standard of Living Is Best Measured by Its