Economics Real Vs Nominal Gdp Questions
The difference between GDP and GDI growth rate per capita growth rate lies in the measures used to calculate them. GDP (Gross Domestic Product) measures the total value of goods and services produced within a country's borders, while GDI (Gross Domestic Income) measures the total income generated by the production of goods and services.
The growth rate of GDP per capita measures the change in the average economic output per person over a specific period of time. It indicates the increase or decrease in the standard of living of individuals within a country.
On the other hand, the growth rate of GDI per capita measures the change in the average income per person over a specific period of time. It reflects the increase or decrease in the income earned by individuals within a country.
In summary, while GDP per capita growth rate focuses on the output of goods and services, GDI per capita growth rate focuses on the income generated from the production of those goods and services.