Answer:
Level of per capita real GDP measures the standard of living of a particular person in an economy. There are two ways to measure the standard of living of a person in a specific country:
(i) Real GDP per capita
(ii) Gross national income per capita
While comparing the real GDP with the nominal GDP, it was found that a real GDP is comparatively better measure of standard of living because the real GDP takes into account the effect of inflation or the level of price rise in an economy.
Real GDP per capita is measured by dividing the real GDP of a nation by its total population.