Final answer:
Economic growth ultimately determines the prevailing standard of living in a country. It is measured by the percentage change in real gross domestic product. As a result of economic growth, people make more money, the population can grow, and education levels rise.
Step-by-step explanation:
Economic growth ultimately determines the prevailing standard of living in a country. Economists measure growth by the percentage change in real (inflation-adjusted) gross domestic product. A growth rate of more than 3% is considered good.
As a result of economic growth, the standard of living improves as people make more money and the population is able to grow. Additionally, education levels rise, which further enhances the standard of living.