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Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884Macroeconomics 11th Edition by Michael Parkin
Edition 11ISBN: 9780133423884 Exercise 5
The Uses and Limitations of Real GDP
U.K. Living Standards Outstrip U.S.
Oxford analysts report that living standards in Britain are set to rise above those in America for the first time since the nineteenth century. Real GDP per person in Britain will be £23,500 this year, compared with £23,250 in America, reflecting not only the strength of the pound against the dollar but also the UK economy's record run of growth since 2001. But the Oxford analysts also point out that Americans benefit from lower prices than those in Britain.
If real GDP per person is greater in the United Kingdom than in the United States but Americans pay lower prices, does this comparison of real GDP per person really tell us which country has the higher standard of living?
U.K. Living Standards Outstrip U.S.
Oxford analysts report that living standards in Britain are set to rise above those in America for the first time since the nineteenth century. Real GDP per person in Britain will be £23,500 this year, compared with £23,250 in America, reflecting not only the strength of the pound against the dollar but also the UK economy's record run of growth since 2001. But the Oxford analysts also point out that Americans benefit from lower prices than those in Britain.
If real GDP per person is greater in the United Kingdom than in the United States but Americans pay lower prices, does this comparison of real GDP per person really tell us which country has the higher standard of living?
Explanation
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Verified
GDP is the gross domestic product. The G...
Macroeconomics 11th Edition by Michael Parkin
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