Which of the following statements is NOT true about using per capita real GDP to measure a nation's economic growth?
A) The definition does not indicate how the increase in growth is being disturbed among the nation's population.
B) The definition assumes that some of the increase in productivity goes to the poor.
C) The definition has understated actual economic growth because it does not take into consideration changes in leisure.
D) The definition is not perfect for measuring increases in a nation's productive capacity.

Question

Quizplus · Accepted Answer

Per capita real GDP measures the average economic output per person, adjusting for inflation. It does not make assumptions about how economic growth is distributed among different income groups, including the poor. Therefore, statement B is not true as the measure does not inherently assume any portion of productivity increases goes specifically to the poor.

Which of the Following Statements Is NOT True About Using