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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About Macroeconomics
The economy is studied as a whole through national income, gross domestic product, inflation, unemployment, economic growth and business cycles. Coverage includes aggregate demand and supply, consumption and investment, money and banking, fiscal and monetary policy, exchange rates and balance of payments, which distinguishes macroeconomics from the study of individual markets.
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