A reasonable measure of the standard of living in a country is ?
Correct answer: A. real GDP per person
- A. real GDP per person
- B. nominal GDP per person.
- C. Real GDP
- D. The growth rate of nominal GDP per person
Explanation
Real GDP per person measures the goods and services available per head after removing the effect of price changes. Nominal GDP can rise merely because prices increased, so it is less suitable for comparing living standards.
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