Comparing changes in nominal Gross National Income (GNI) per capita over a ten-year period is often an unreliable way to assess improvements in a nation's average standard of living.
The primary reason for this unreliability is that nominal GNI per capita fails to adjust for changes in:
the rate of population growth.
the average price level.
the size of the informal economy.
the level of net primary income from abroad.
187 exam-style questions on AQA A Level Economics 2.1 The measurement of macroeconomic performance, covering 2.1.1 The objectives of government economic policy, 2.1.2 Macroeconomic indicators, 2.1.3 Uses of index numbers, and 2.1.4 Uses of national income data (A-level only). Each one has a worked solution and a mark scheme showing where the marks go.