How do we calculate growth in a nation's standard of living?
What will be an ideal response?
The standard of living is measured by real GDP per person. Thus growth in the standard of living is calculated using the growth rate of real GDP per person.
You might also like to view...
In the short run, if the price level rises, then the overall economy can temporarily produce beyond its nominal capacity. One reason for this is that
A) existing capital equipment can be used more intensively. B) the unemployment rate usually rises dramatically along with the price level. C) workers can be switched from counted to uncounted production. D) wage rates rise almost simultaneously with the price level.
The equimarginal principle illustrates:
a. that consumers are essentially robots. b. that people behave irrationally. c. that people behave in rather consistent ways in order to maximize happiness. d. that people behave in rather inconsistent ways. e. that people will spend all their incomes.