Question

​Long-run economic growth in the United States is best measured using A. nominal GDP per​ capita, which has been trending strongly upwards over the past century. B. real GDP per​ capita, which has been trending strongly upwards over the past century. C. nominal GDP per​ capita, the values for which represent constant purchasing power. D. real GDP per​ capita, which has increased every single year over the past century.

Answer 1

Answer:

The correct answer is option B.

Explanation:

Long-run economic growth is measured in the US using real GDP per capita. It can also be called real GDP per person. Instead of nominal GDP, real GDP is used as it is an inflation-adjusted measure. It measures the change in economic output.

The trend in the real GDP per capita has been strongly upwards except for some short term fluctuations because of business cycles.