Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
Real GDP / Population
B
Nominal GDP / Population
C
GDP Growth Rate / Population
D
Real GDP x Population
Understanding the Answer
Let's break down why this is correct
Answer
Real GDP per capita is a way to measure the average economic output per person in a country, adjusted for inflation. To calculate it, you first need to find the Real GDP, which is the total value of all goods and services produced in a country, adjusted for price changes over time. Then, you divide this Real GDP by the total population of the country. For example, if a country has a Real GDP of $1 trillion and a population of 50 million people, you would divide $1 trillion by 50 million to find that the Real GDP per capita is $20,000. This number helps us understand how much economic output is available for each person, making it easier to compare living standards between different countries.
Detailed Explanation
To find Real GDP per Capita, you divide the total Real GDP by the number of people. Other options are incorrect because Nominal GDP uses current prices, not adjusted for inflation; The GDP Growth Rate shows how fast the economy is growing, not how much each person has.
Key Concepts
Economic Growth
Topic
Calculating Real GDP per Capita
Difficulty
easy level question
Cognitive Level
understand
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