Some researchers argue that the overall standard of living increased during the 1920s.In general,holding constant all other factors that might impact it,economists are careful about connecting an increase in the standard of living to

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Economists generally connect an increase in the standard of living with an increase in the output of goods and services per worker. This is because higher output per worker leads to higher incomes and greater access to goods and services, which consequently raises the overall standard of living. Increases in labor used in production processes (A) may lead to higher output, but this is not sufficient to raise the standard of living if the increase in output is offset by a proportionate rise in population. Similarly, new inventions (B) may lead to higher output, but they are not sufficient to raise the standard of living if they are not accompanied by increases in worker productivity. Finally, the discovery of new sources of gold and silver (D) may lead to temporary increases in income and output, but this does not necessarily translate to higher standards of living, especially if the increased output is used to buy imported goods instead of domestically produced ones.

Some Researchers Argue That the Overall Standard of Living Increased