ECONOMICS
ECONOMIC GROWTH
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
real GDP per household
|
|
|
real GDP per head
|
|
|
real GDP per worker
|
|
|
None of the above
|
Detailed explanation-1: -Short definition. GDP per capita is the sum of gross value added by all resident producers in the economy plus any product taxes (less subsidies) not included in the valuation of output, divided by mid-year population.
Detailed explanation-2: -Real GDP takes into account inflation. In other words, Real GDP measures the actual increase in goods and services and excludes the impact of rising prices. Real GDP per capita takes into account the average GDP per person in the economy.
Detailed explanation-3: -Key Takeaways Gross domestic product per capita measures a country’s economic output per person and is calculated by dividing the GDP of a country by its population.
Detailed explanation-4: -GDP-per capita (PPP) compares GDP on a purchasing power parity basis divided by population as of 1 July for the same year.
Detailed explanation-5: -Nominal Gross Domestic Product (GDP) and Real GDP both quantify the total value of all goods produced in a country in a year. However, real GDP is adjusted for inflation, while nominal GDP isn’t. Thus, real GDP is almost always slightly lower than its equivalent nominal figure.