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Explain what “real GDP per capita” is measuring


  1. Explain what “real GDP per capita” is measuring.
  2. Real GDP per capita is a measure often used to indicate standard of living. What are the arguments FOR using it as an indicator of standard of living?
  3. What are the arguments AGAINST using real GDP as a measure of the standard of living?
  4. Review the other three alternative measures discussed in the file. Be prepared to explain which of the four methods you think have the greatest appeal to you as an appropriate measure of standard of living, and why.

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