Real GDP Was $4,719 Billion in Year 1 and $4,848

question 122

Multiple Choice

Real GDP was $4,719 billion in Year 1 and $4,848 billion in Year 2.In contrast,real GDP per capita in Year 1 was $19,261,but in Year 2 it was only $19,162.How could one measure have increased while the other measure decreased?

• A) Real GDP indicates the level of industrial production and provides a measure of the economic strength of the nation;it is the only valid measure of economic growth.
• B) Inflation occurred during this period;therefore the two measures are not comparable.
• C) The population increased during this time period,so the real GDP per capita data reflect this change.
• D) Real GDP per capita measures changes in labour productivity that are not captured by a simple measure like real GDP.
• E) The population decreased during this time period,so the real GDP per capita data reflect this changE.

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Definitions:

Insulin

A substance secreted by the pancreas that controls levels of blood sugar by helping glucose absorption into the body's tissues.

Appetite

The desire to eat food, felt as hunger, which can be influenced by physiological, psychological, and environmental factors.

Taste Buds

sensory organs located on the tongue, responsible for the perception of taste, including sweet, sour, salty, bitter, and umami flavors.

Glucose Entry

The process by which glucose, a primary source of energy, enters cells to be utilized for metabolic processes.