Question

If real GDP per capita measured in 2009 dollars was​ $6,000 in 1950 and​ $48,000 in​ 2018, we would say that in​ 2018, the average American could buy​ ________ times as many goods and services as the average American in 1950.

Answer 1

8

Step-by-step explanation:

Gross domestic product is the market of all the goods and services produced and rendered during a specific period of time. GDP can be expressed in real value or nominal value .Real GDP does not include the inflation effect but the nominal GDP included the inflation effect on the value of product and services.

According to given data in the question

Real GDP per capita in 1950 = $6,000

Real GDP per capita in 2009 = $48,000

Increase in time = Real GDP per capita in 2009 / Real GDP per capita in 1950 = $48,000 / $6,000 = 8 times