Which of the following is a TRUE statement concerning economic growth?
A) Changes in per capita nominal GDP are used to measure economic growth because population growth can distort the figures and we want to use the nominal amounts since that is what people identify with.
B) Changes in per capita nominal GDP are used to measure economic growth, but there are serious problems concerning the desirability of using figures that do not account for pollution and urban sprawl.
C) Changes in per capita real GDP are used to measure economic growth because this accurately measures all the differences in living standards across countries.
D) Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures.

Question

Quizplus · Accepted Answer

Changes in per capita real GDP are used to measure economic growth because inflation and population growth can distort nominal GDP figures or total GDP figures. Real GDP takes into account inflation, which allows for a more accurate measurement of economic growth. Per capita is used to account for population growth, which can also distort the figures.

Which of the Following Is a TRUE Statement Concerning Economic