Which of the following would be most appropriate for the measurement of differences in the average standard of living of people at different points in time?
A) nominal GDP
B) real GDP
C) nominal GDP per capita
D) real GDP per capita

Question

Quizplus · Accepted Answer

Real GDP per capita would be the best choice as it adjusts for both inflation and changes in population size, making it a more accurate measure of changes in the average standard of living over time. Nominal GDP and nominal GDP per capita do not account for inflation, which can distort the true value of economic output. Real GDP is adjusted for inflation but does not account for changes in population size.

Which of the Following Would Be Most Appropriate for the Measurement