Which statement about nominal and real GDP is incorrect?
A) Real GDP per person is a better measure of standard of living than nominal GDP per person.
B) Real GDP includes products and services produced within a country's borders, no matter what the nationality of the business doing the producing.
C) Nominal GDP per person is measured as a flow.
D) If real GDP is higher this year than last year, the standard of living must have risen.
E) If real GDP is higher this year than last year, there is economic growth.

Question

Quizplus · Accepted Answer

A higher real GDP does not necessarily mean a higher standard of living, as distribution of income and other factors can also impact the standard of living.

Which Statement About Nominal and Real GDP Is Incorrect