Real GDP per capita is calculated as the total real GDP divided by the:
A) GDP deflator.
B) nominal GDP.
C) total population.
D) price level.

Question

Quizplus · Accepted Answer

Real GDP per capita is calculated by dividing the total real GDP by the total population. This gives us a measure of economic output per person. A and D are incorrect because the GDP deflator and price level are used to calculate inflation, not real GDP per capita. B is incorrect because nominal GDP includes the effects of inflation, which makes it an inaccurate measure of economic output.

Real GDP Per Capita Is Calculated as the Total Real