(Answered) We measure differences in living standards between countries usingReal Gross Domestic Product.None…

➤ Why prefer real GDP per capita instead of nominal GDP?
Real GDP per capita accounts for price changes and population size, so it reflects the actual quantity of goods and services available per person. Nominal GDP uses current prices and can be distorted by inflation or exchange rate swings. Real per capita data gives a clearer picture of changes in average living standards over time and across countries.