The Primacy of GDP

GDP per capita is a measure of prosperity because it divides the total GDP of a country by its population. Which of the below forecasts for a country would results in the the highest GDP per Capita Growth?

An increase of 2% in GDP and a population growth of 0%. (As stated in the question)

What typically happens to nonfarm payrolls, the PMI indicator, and housing starts at the onset of a recession in the United States?

Non-farm payrolls go DOWN, the PMI indicator goes DOWN, the housing starts goes DOWN. (At the onset of a recession, people lose their jobs, business lose confidence, and fewer people can afford to buy houses. According, non-farm payrolls, which measures the change in the number fo people with jobs goes down. The PMI indicator, which denotes confidence with a high reading and anxiety with a low reading goes down. The housing starts, which represents the number of new homes being built, also goes down).

Which of the following is the best leading economic indicator?

PMI (Reason: The goal of a leading economic indicator it to be alerted to forthcoming turning points in real GDP growth. In the Great Recession starting in late 2008, PMI fell to its low point and started to recover well in advance of GDP falling to its low point and then rebounding)

Here is a chart showing both nominal GDP growth and real GDP growth for a country. Which of the following can be a true statement at the time the chart was captured?

The country has inflation. The top line is nominal growth growth and the bottom line is real growth.