Does Economic Growth

Really Measure
Standard of Living?

What is Standard of Living?

For Economists a good
measure of living standards
is
Value of all goods and

services consumed
per capita

 Most commonly used

measure of standard of
living is
the national output per

capita, usually
measured as GDP or
GNP per capita

More
Production

More
Consumption

The key to producing

more per capita is

Higher Labor
Productivity.

Labor

Capital

Increase in Quantity
of Economic Inputs
Increase in Quality of
Economic Inputs
Technological
Change