Real GDP was $4,179 billion in year 1 and $4,848 billion in year 2. IN contrast,

Question

Real GDP was $4,179 billion in year 1 and $4,848 billion in year 2. IN contrast, real GDP per capita in Year 1 was $19,261, but in year two it was only $19,162. Why did one measure increase while the other measure decreased? A) real gdp indicates the level of industrial production and provides a measure of the economic strength of the nation; it is only valid measure of economic growth B) inflation occurred during this time period therefore the two measure are not comparable C)population increased during this time period so real GDP per captia data reflect this change D) real gdp per capita measures changes in labor productivity that are not captured by a simple measure like real GDP

Explanation / Answer

B) inflation occurred during this time period therefore the two measure are not comparable Due to inflation rate the whole scene of teh economy changes, So things cant be compared directly

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