Overview
Calculating Real GDP per capita is essential for understanding the economic performance of a country on a per-person basis. It adjusts for inflation, providing a clearer picture of how well an economy is doing over time. By dividing the Real GDP by the population, we can assess the average economic ...
Key Terms
Example: The GDP of the USA was $21 trillion in 2019.
Example: Real GDP helps compare economic performance over time.
Example: Nominal GDP can overstate economic growth if inflation is high.
Example: Inflation can erode purchasing power over time.
Example: Per capita income is used to assess living standards.
Example: The GDP deflator helps convert nominal GDP to real GDP.
Related Topics
Economic Growth
The increase in the production of goods and services in an economy over time.
intermediateInflation Measurement
Methods and indices used to measure inflation in an economy.
intermediateStandard of Living
Factors that contribute to the quality of life and economic well-being of individuals.
intermediateKey Concepts
Real GDPPer CapitaInflation AdjustmentEconomic Productivity