Importance of real GDP per capita compared to nominal GDP or real GDP.

Question

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Answer 1

Question

Chapter 37, Problem 1CYU

To determine

To find:

Importance of real GDP per capita compared to nominal GDP or real GDP.

Expert Solution & Answer

Explanation of Solution

Real GDP per capita is a better indicator for a country’s economic progress. It is free from elements such as inflation, deflation or currency rates. Any change in output of a country affects the real GDP, showing the growth of a country. Moreover, calculating per capita real GDP shows the distribution of GDP over a growth of population, which again is beneficial for the country rather than having only real GDP as an indicator.

Nominal GDP takes inflation, deflation and currency fluctuation into consideration that violates the importance of measure of economic progress.

Economics Concept Introduction

Real GDP is the value of goods and services produced in an year adjusted through inflation and divided by the population level of an economy.

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Answer 2

Question

Chapter 37, Problem 1CYU

To determine

To find:

Importance of real GDP per capita compared to nominal GDP or real GDP.

Expert Solution & Answer

Explanation of Solution

Real GDP per capita is a better indicator for a country’s economic progress. It is free from elements such as inflation, deflation or currency rates. Any change in output of a country affects the real GDP, showing the growth of a country. Moreover, calculating per capita real GDP shows the distribution of GDP over a growth of population, which again is beneficial for the country rather than having only real GDP as an indicator.

Nominal GDP takes inflation, deflation and currency fluctuation into consideration that violates the importance of measure of economic progress.

Economics Concept Introduction

Real GDP is the value of goods and services produced in an year adjusted through inflation and divided by the population level of an economy.

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Answer 3

Question

Chapter 37, Problem 1CYU

To determine

To find:

Importance of real GDP per capita compared to nominal GDP or real GDP.

Expert Solution & Answer

Explanation of Solution

Real GDP per capita is a better indicator for a country’s economic progress. It is free from elements such as inflation, deflation or currency rates. Any change in output of a country affects the real GDP, showing the growth of a country. Moreover, calculating per capita real GDP shows the distribution of GDP over a growth of population, which again is beneficial for the country rather than having only real GDP as an indicator.

Nominal GDP takes inflation, deflation and currency fluctuation into consideration that violates the importance of measure of economic progress.

Economics Concept Introduction

Real GDP is the value of goods and services produced in an year adjusted through inflation and divided by the population level of an economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 37, Problem 1CYU

To determine

To find:

Importance of real GDP per capita compared to nominal GDP or real GDP.

Expert Solution & Answer

Explanation of Solution

Real GDP per capita is a better indicator for a country’s economic progress. It is free from elements such as inflation, deflation or currency rates. Any change in output of a country affects the real GDP, showing the growth of a country. Moreover, calculating per capita real GDP shows the distribution of GDP over a growth of population, which again is beneficial for the country rather than having only real GDP as an indicator.

Nominal GDP takes inflation, deflation and currency fluctuation into consideration that violates the importance of measure of economic progress.

Economics Concept Introduction

Real GDP is the value of goods and services produced in an year adjusted through inflation and divided by the population level of an economy.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 37, Problem 1CYU

To determine

To find:

Importance of real GDP per capita compared to nominal GDP or real GDP.

Expert Solution & Answer

Explanation of Solution

Real GDP per capita is a better indicator for a country’s economic progress. It is free from elements such as inflation, deflation or currency rates. Any change in output of a country affects the real GDP, showing the growth of a country. Moreover, calculating per capita real GDP shows the distribution of GDP over a growth of population, which again is beneficial for the country rather than having only real GDP as an indicator.

Nominal GDP takes inflation, deflation and currency fluctuation into consideration that violates the importance of measure of economic progress.

Economics Concept Introduction

Real GDP is the value of goods and services produced in an year adjusted through inflation and divided by the population level of an economy.

Answer 6

Chapter 37, Problem 1CYU

To determine

To find:

Importance of real GDP per capita compared to nominal GDP or real GDP.

Expert Solution & Answer

Explanation of Solution

Real GDP per capita is a better indicator for a country’s economic progress. It is free from elements such as inflation, deflation or currency rates. Any change in output of a country affects the real GDP, showing the growth of a country. Moreover, calculating per capita real GDP shows the distribution of GDP over a growth of population, which again is beneficial for the country rather than having only real GDP as an indicator.

Nominal GDP takes inflation, deflation and currency fluctuation into consideration that violates the importance of measure of economic progress.

Economics Concept Introduction

Real GDP is the value of goods and services produced in an year adjusted through inflation and divided by the population level of an economy.

Answer 7

Chapter 37, Problem 1CYU

To determine

To find:

Importance of real GDP per capita compared to nominal GDP or real GDP.

Answer 8

Expert Solution & Answer

Explanation of Solution

Real GDP per capita is a better indicator for a country’s economic progress. It is free from elements such as inflation, deflation or currency rates. Any change in output of a country affects the real GDP, showing the growth of a country. Moreover, calculating per capita real GDP shows the distribution of GDP over a growth of population, which again is beneficial for the country rather than having only real GDP as an indicator.

Nominal GDP takes inflation, deflation and currency fluctuation into consideration that violates the importance of measure of economic progress.