Total GDP divided by population is known as which indicator?

• A. GDP per capita
• B. Real GDP
• C. Nominal GDP
• D. Inflation

Answer: (A)

Dividing total GDP by the population gives GDP per capita. This measures the average economic output available per person and is commonly used as a rough proxy for living standards, since it reflects how large the economy is relative to how many people share it. But it’s important to note its limits: it doesn’t capture how income is distributed or differences in the cost of living. Real GDP, in contrast, adjusts for inflation to show actual growth in output, while nominal GDP uses current prices without inflation adjustment. Inflation itself is a general rise in prices, not a per-person output measure.