How do i estimate the average standard of living?

Question

How do i find it if iam giving the real gdp ex. growing at 3.5 percent while a population grows at 1.5 percent per year. How would i find the average standard of living?

Answer 1

Economists estimate the average standard of living in a particular year in a particular country by taking the total value of goods and services produced in that country in that year and dividing by population. The total value of goods and services produced is called real Gross Domestic Product, or real GDP. The ratio of GDP to population is called GDP per capita. GDP per capita is the usual measure of the standard of living.

Answer 2

Standard of living is a relative descriptor; the growth rate of real GDP and population are rates. WIthout some base level, you can only solve this in the abstract.

If you're looking for the change in the average standard of living, it's simply the derivative of the GDP growth to the population growth, ie:

Percentage change in GDP divided by Percentage change in population.

Answer 3

Average standard of living is usually measured with the help of per capita income.Per capita income is the income earn per head. The average standard of living is always calculated over a period of times usually,year.While calculating the average standard of living economist take into consideration the total value of goods and services produced in a country over a period of time and the total population of the country.
standard of living =real Gross Domestic Product(Goods and services)/Total Population.
Monetary measure of living standard tend to omit important aspect of live that cannot be bought and sold.

Answer 4

Tough one, considering that the 'middle class' population is dissolving.