Consider the following statements : (i) Rate of growth of GDP exhibits the performance of the economy.…
GDP growth is a standard output-performance indicator, and real GDP per capita a rough average living-standard indicator. Both statements hold in that qualified indicator…
Choose your answer
Consider the following statements :
(i) Rate of growth of GDP exhibits the performance of the economy.
(ii) Per capita GDP shows the standard of living of the people in a country.
Which of the statements given above is/are correct ?
Answer and explanation
Correct answer C
GDP growth is a standard output-performance indicator, and real GDP per capita a rough average living-standard indicator. Both statements hold in that qualified indicator sense. Only one omits the other; neither is too strong. Neither measure captures distribution, environment or all welfare dimensions.
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