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Real GDP and Per Capita Real Output Are Two Indicators

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Essay

Real GDP and per capita real output are two indicators used by the government to measure economic growth.Define them,and explain why growth of per capita real output is a more accurate measurement of the growth in the economic welfare of individuals.


Definitions:

Partnerships

A type of business organization where two or more individuals own and operate the business, sharing profits and losses.

Proprietorships

Business entities that are owned and operated by a single individual, with no legal distinction between the owner and the business.

Labor Supply

The collective amount of time employees are prepared and capable of working for a specified pay rate, during a certain timeframe.

Perfectly Elastic

A situation in which any small change in price leads to an infinite change in quantity demanded or supplied.

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