In the long run, changes in average material living standards are best shown by

Question

Quizplus · Accepted Answer

Average material living standards are best shown by the growth in real per capita GDP, which measures the total production of goods and services in an economy adjusted for inflation and divided by the population. This provides a better indicator of the economic well-being of individuals in a country than just overall GDP growth or changes in fiscal or monetary policy. Population growth may have some effect on average material living standards, but it is not the best indicator.

In the Long Run, Changes in Average Material Living Standards