What is the difference between the gdp and the per capita gdp?


Question: What is the difference between the gdp and the per capita gdp?

Gross Domestic Product (GDP) and GDP per capita are both economic indicators, but they measure different aspects of a country's economy. GDP represents the total value of all goods and services produced over a specific time period within a country, reflecting the size of its economy. It is calculated by summing the outputs of every enterprise, or by adding up all expenditures or incomes within the country. On the other hand, GDP per capita divides the GDP by the population size, providing an average economic output per person, which can be a more accurate indicator of individual prosperity and living standards. While a high GDP indicates a large economy, a high GDP per capita suggests that the country's wealth is distributed relatively evenly among its residents, often implying a higher standard of living.


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