Gdp and the Standards of Living

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Standards of living can be evaluated by the measure of GDP, level of inflation, net exports and fiscal balance. Evaluation by using the GDP as an indicator would be relevant as it reflects the total national economic activity and the level of wealth of the society. GDP per capita is adjusted for the size of the economy in terms differences in price levels and also population of the country. There are many factors that would affect the standard of living in a country. Some that cannot be measured by the GDP and some that can be directly reflected by the GDP. GDP will be able to give us a rough idea on how the standard of living is in a certain country. Living standards tend to move with GDP per capita, so we can assume that the changes of…show more content…
In the end, economic statistics only measure what they measure, which may not bear much relation to how well off we are. Conclusively, standards of living are to be improved by providing poor families access to what they can get or what they can use at that time to make life comfortable, healthy and fruitful. At the end of the day, economic statistics can only show the significant figures of a country and only what they measure, but it may not be of that much relation to how well off citizens are. Measuring economic welfares of countries by using economic statistics cannot fully measure the economic welfare of a
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