MYTUTOR SUBJECT ANSWERS

101 views

What is economic growth and how can it improve living standards?

Economic growth is defined as an increase in the productive potential of an economy. It is measured in percentage growth of GDP (Gross Domestic Product), year on year. India's rate of economic growth is 7.1% in 2016 Q1.

Growth can lead to higher living standards because if GDP rises, there is more money in the domestic economy. This means that business can make more profits, and therefore can pay employees higher wages, or even hire more employees. This means that GDP per capita/ household rises. Therefore the disposable income of workers rises. This means that they can purchase more goods and services with their income, leading to a rise in living standards.

Thomas  W. A Level Economics tutor, GCSE Economics tutor

3 months ago

Answered by Thomas , a GCSE Economics tutor with MyTutor

Still stuck? Get one-to-one help from a personally interviewed subject specialist

55 SUBJECT SPECIALISTS

£18 /hr

Safiya S.

Degree: Economics (Bachelors) - Warwick University

Subjects offered: Economics, -Personal Statements-

Economics
-Personal Statements-

“Hello! I am a first year undergraduate student studying Economics at the University of Warwick. I got A*A*A*A in Economics, History, Physics and Maths at A level as well as 11A*s at GCSE level. I discovered my love for economics when ...”

£18 /hr

Becky L.

Degree: Economics (Bachelors) - Warwick University

Subjects offered: Economics, Maths

Economics
Maths

“Hi, I'm Becky and I'm a second year Economics student at the University of Warwick!  About Me I've always loved Maths, but am also pretty creative, too - I think that's why I decided to study economics. I did the 11+, got good grades...”

£18 /hr

Polly G.

Degree: BSc Geography (Bachelors) - Bristol University

Subjects offered: Economics, Geography+ 2 more

Economics
Geography
Biology
Art

“About Me: I am currently studying Geography at The University of Bristol, I grew up in London and attended Latymer Upper School. I chose Geography because of my interest in cultures, societies and communities around the world, my A Le...”

MyTutor guarantee

About the author

£18 /hr

Thomas W.

Degree: Philosophy, Politics and Economics (Bachelors) - Warwick University

Subjects offered: Economics

Economics

“About me Hello, my name is Tom and I read PPE (Philosophy, Politics and Economics) at Warwick, achieving A*A*A at A level in Maths, Economics and Biology respectively. I can't recall a time where i have not been fascinated bycurrent ...”

You may also like...

Posts by Thomas

Does a higher NMW increase the distribution of income?

What is economic growth and how can it improve living standards?

Other GCSE Economics questions

What is an inferior good?

What is the difference between the long run and short run Phillips curves?

What is a liquidity trap?

Explain two benefits to the government that falling unemployment provides.

View GCSE Economics tutors

Cookies:

We use cookies to improve our service. By continuing to use this website, we'll assume that you're OK with this. Dismiss

mtw:mercury1:status:ok