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
Answered by Omar B. Economics tutor

5711 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What is demand and supply elasticity?


The elasticity of supply of frozen pizzas is likely to be more elastic than the supply of fresh vegetables. Do you agree with this statement?


What are economies of scale?


Why do price of exchange rates increase when interest rates increase? What does it mean that a currency is strong?


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning