The Rate of Growth in Real Per Capita GDP Is

question 17

Multiple Choice

The rate of growth in real per capita GDP is deficient as a measure of the rate of economic growth because

• A) it does not account for the rate of inflation.
• B) per capita GDP has no relation to per capita income.
• C) the rate of increase of per capita GDP does not measure the degree of inequality in output distribution.
• D) large differences in the rate of increase of current per capita GDP make little difference in living standards in the future.
• E) it underestimates the rate of growth in real GDP.

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