Change in Per Capita Real Gross Domestic Product (GDP) Is

question 109

Multiple Choice

Change in per capita real gross domestic product (GDP) is the best measure of economic growth because:

• A) it adjusts changes in nominal GDP for changes in the price level and population growth.
• B) it ignores changes in the price level used to compute nominal GDP.
• C) it includes government spending, whereas nominal GDP does not.
• D) it includes all economic activity, including sales of illegal goods and services, which nominal GDP ignores.
• E) it does not consider changes in the population, which are not relevant to GDP anyway.

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