Explain why a rise in GDP will lead to a rise in the standard of living

A rise in GDP would lead to a reduction in unemployment creating jobs which will provide consumers with increased income and purchasing power and therefore increase their standard of living. If population is fixed and GDP rises, you can expect to see a rise in GDP per capita, a measure of standard of living.

OB

Related Economics GCSE answers

All answers ▸

What is the law of demand?


Explain why food is price inelastic.


Explain three possible reasons for growth in the value of an economy’s exports of goods.


What is price elasticity of demand?