Economic growth has raised living standards around the world. All that considered, though, GDP remains the standard measurement for economic growth in mainstream economics, politics and public imagination. It is measured in percentage growth of GDP (Gross Domestic Product), year on year. Gross domestic product (GDP) is the total value of goods and services produced in a 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 will be able to give us a rough idea on how the standard of living is in a certain country. The measures of living standards used are income, expenditure and the availability of consumer durables. 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. But … Economic growth is defined as an increase in the productive potential of an economy. GDP per capita gives an idea of the standard living, or how well people live in that nation. ADVERTISEMENTS: Meaning: Standard of living’ refers to the necessaries, comforts and lux­uries which a person is accustomed to enjoy. The standard of living is derived from per capita GDP, determined by dividing GDP by the number of people living in the country. Some countries have a big GDP only because of their large population. GDP only measures the total size of a country's economy. Measuring living standards. 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. 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. There are alternatives to GDP, like measuring happiness. India's rate of economic growth is 7.1% in 2016 Q1. In other words, standard of living of the people means the quantity and quality of their consumption. 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. GDP divided by population, gives GDP per capita, which is sometime used to measure the standard of living. And that's also why it’s a very important number. Growth can lead to higher living standards because if GDP rises, there is more money in the domestic economy. standard of living equals the ratio of real GDP to population, giving real GDP per capita. 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. 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. The largest economy in the world, the United States, was only the 14th happiest country in the world that year. 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. Researchers typically attribute the development of the linkages between the standard 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. 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