Real GDP per Capita

Real GDP per capita shows the measurement of the economic output of the country divided by the number of people and adjusted for inflation and deflation. This is the best way to compare economic indicators like GDP for countries which have different population sizes. In the 1980’s, the recession affected real GDP per capita. The tax rate was cut during this time, which helped bring an end to the recession. The gray shaded areas are periods of recession, just like the first graph. During these periods, unemployment was high and production was low. The greatest interruption of GDP can be seen during the Great Recession between 2008-2009.

Real GDP per capita was low between 2008-2009 because of the Great Recession. As previously stated this was caused by a number of reasons, including the oil crisis and the energy crisis, as well as the savings and loan crisis. It is currently at its highest because of low unemployment and high production. Firms do not need to lay off or fire workers when the real GDP per capita is high and there is no recession.