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GDP per capita is calculated as GDP divided by the:
AInflation rate
BNumber of firms
CTax revenue
DPopulation
Answer & Solution
Correct answer: D. Population
1. Comparing living standards requires adjusting for country size.
2. Total GDP tells you the size of an economy, not the share per person.
3. A country's GDP per capita is calculated by dividing GDP by the population.
4. That gives output per person.
_Source: OpenStax Principles of Macroeconomics for AP Courses 2e (CC BY 4.0), Ch 5 'The Macroeconomic Perspective'_
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