Why Is a "Real" Measure Used as the Basis for a Nation's

question 69

Multiple Choice

Why is a "real" measure used as the basis for a nation's economic growth rate?

• A) "Real" measures focus on capital, which is the most important factor in growth.
• B) This is an adjustment for the cost of living, so the measure captures growth of output rather than price.
• C) Adjusting for the size of the population allows a focus on the average person's situation.
• D) "Real" adjustments give insights into the gap between the most and least prosperous people in a country.

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