A-LevelEconomicsThe macroeconomy9708/32 · May/June 2018 · Q211 Mark

Growth rates can be calculated using changes in the value of GDP from year to year. Why is real GDP per head considered to be a better indicator than nominal GDP per head for this calculation? A Real GDP adjusts for price changes by using a base year. B Real GDP ignores the effects of fluctuations in exchange rates on purchasing power. C Real GDP includes changes in the size of the population. D Real GDP measures GDP at factor cost rather than market prices.

Mark scheme

Marking points from the official mark scheme (May/June 2018). The mark or mark type is shown in brackets.

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Topic: The macroeconomy, A-Level Economics (syllabus 9708). Structured question, 1 mark.
Source: A-Level Economics, May/June 2018 Paper 3 Variant 2, question 21.

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