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

5632 Views

See similar Economics GCSE tutors

Related Economics GCSE answers

All answers ▸

What affect does increasing demand have on price levels and consumer surplus?


Following a period of negative economic growth, explain how total government spending and tax revenues are likely to be affected.


A football club raises all stadium seat prices by 5%. The demand for seats falls by 1% in zone W, by 3% in zone X, by 5% in zone Y and by 6% in zone Z. In which zone is the responsiveness of demand for seats to the price change elastic?


Please show, using a diagram with explanation, the effect on the UK market for t-shirts of a flood in Bangladesh, a leading cotton growing nation.


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