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

question 93

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.Why did one measure increase 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)Population increased during this time period so 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.

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Definitions:

Management by Exception

A management strategy where supervisors intervene only when their subordinates' performance deviates significantly from standards, allowing managers to focus on more critical issues.

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The action of focusing efforts and resources on tasks or issues deemed most important or urgent at a given time.

After-Action Review

Formally examines results to identify lessons learned in a completed project or special operation. Such a process ought to be part of the organisation’s knowledge management process.

Structured Review

A systematic approach in evaluating or assessing a particular subject matter based on predefined criteria and methodologies.