Why do economists focus on real GDP per capita as a measure of economic progress rather than on some other measure, such as nominal GDP per capita or real GDP?
Apply the Rule of 70 to the data in Figure 37.3 to determine how long it will take each of the countries listed there to double its real GDP per capita. Will India’s real GDP per capita exceed that of the United States in the future if growth rates remain the same? Why or why not?
Although China and India currently have growth rates much higher than the U.S. growth rate, the typical Chinese or Indian household is far poorer than the typical American household. Explain why.