Answer to Question #181679 in Macroeconomics for Val

Question

One of the major determinants of increasing real GDP per capita and therefore a

country’s standard of living is

Answer 1

Real GDP refers to the nominal GDP after the adjustments on the effects of inflation had been made.

The real GDP per capita is a measure of the standards of living. It is equal to the real GDP divided by the total population in the country.

If there is an increase in the real GDP, the real GDP per capita increases and this means the standards of living have increased.