If one wants to know how the material well-being of the average person has changed over time in a given country, one should look at the
A)level of real GDP.
B)growth rate of nominal GDP.
C)growth rate of real GDP.
D)growth rate of real GDP per person.

Question

Quizplus · Accepted Answer

Real GDP measures the overall size of an economy but does not provide information on how much each individual in the economy produces. The growth rate of nominal GDP does not account for inflation, which can distort the true change in material well-being. The growth rate of real GDP addresses the inflation issue but still does not provide information on how the material well-being of the average person has changed. Therefore, the growth rate of real GDP per person (also known as real GDP per capita) is the best indicator of how the material well-being of the average person has changed over time in a given country.

If One Wants to Know How the Material Well-Being of the Average