In'Macro Land, per capita real GDP, is $40,000, and the average real wage income is $25,000. A politician argues that this discrepancy between what the economy produces and what workers receive reflects a serious failure of the economy as workers should be receiving per capita real GDP.

Briefly explain why the politician is right or wrong.

Answer rating: 100% (QA)

The polictican is right as per capita real GDP is the average of ea... View the full answer