Economic growth, for instance, isn’t always a reliable indicator of the well-being of people living in that country. The largest economy in the world, the United States, was only the 14th happiest country in the world that year. Some countries have a big GDP only because of their large population. India's rate of economic growth is 7.1% in 2016 Q1. standard of living equals the ratio of real GDP to population, giving real GDP per capita. All that considered, though, GDP remains the standard measurement for economic growth in mainstream economics, politics and public imagination. The standard of living is derived from per capita GDP, determined by dividing GDP by the number of people living in the country. This article draws on data from the Family Finances Survey to assess the living standards of the unemployed after various durations of unemployment and compare these with the living standards of families with low incomes from work. GDP per capita is the best way to compare GDP between countries because it divides the GDP by the number of residents, and measures the country's standard of living.In the first quarter of 2020, the U.S. GDP per capita was $57,621. The measures of living standards used are income, expenditure and the availability of consumer durables. It is measured in percentage growth of GDP (Gross Domestic Product), year on year. GDP per capita gives an idea of the standard living, or how well people live in that nation. In other words, standard of living of the people means the quantity and quality of their consumption. Gross domestic product per capita (GDP per capita) is the total of the goods and services produced in a country divided by the number of people in the country. GDP only measures the total size of a country's economy. GDP per capita is a useful measure as a summary indicator of living standards in a country, since Gross Domestic Product measures the market value of all final goods and services produced within a country in a given period of time. GDP divided by population, gives GDP per capita, which is sometime used to measure the standard of living. Gross domestic product (GDP) is the total value of goods and services produced in a country. But … Measuring living standards. Economic growth has raised living standards around the world. Living standards tend to move with GDP per capita, so we can assume that the changes of living standards can be reflected in the changes of GDP per capita. ADVERTISEMENTS: We know that if a person satisfies some wants in a particular manner long enough, they recur and […] And that's also why it’s a very important number. Economic growth is defined as an increase in the productive potential of an economy. ADVERTISEMENTS: Meaning: Standard of living’ refers to the necessaries, comforts and luxuries which a person is accustomed to enjoy. One way that GDP growth is important to: Americans’ output needs to keep up with population growth if people want to maintain their standard of living. GDP will be able to give us a rough idea on how the standard of living is in a certain country. Thus, the standard of living increases (decreases) when economic growth (i.e., the growth rate of real GDP) exceeds (falls below) the population growth rate. There are alternatives to GDP, like measuring happiness. The Inclusive Development Index measures the performance of economies in improving not just aggregate growth data but more importantly in raising people’s living standards. Gross domestic product, or GDP, measures the total output of the economy, including activity, stability, and growth of goods and services; as such, it’s seen as a proxy for the economy. Researchers typically attribute the development of the linkages between the standard Growth can lead to higher living standards because if GDP rises, there is more money in the domestic economy.