Final answer:
Economic growth is most directly related to a country's standard of living, with a growth rate above 3% being ideal for improvement. It also affects population growth and education levels, contributing to overall quality of life. Though linked to happiness and inflation, standard of living is the primary factor influenced by economic growth.
Step-by-step explanation:
Economic growth is closely related to a country's standard of living. This is measured by the percentage change in real (inflation-adjusted) gross domestic product (GDP), and a growth rate of more than 3% is generally considered good. With economic growth, the standard of living improves as individuals earn more money, allowing for population growth, and leading to higher education levels and overall improved quality of life.
While economic growth can influence happiness, population, and inflation rate, it is the prevailing standard of living that is most directly affected by economic growth. A higher standard of living often reflects better access to necessities, improved comfort, access to education, and higher levels of wealth distribution.Furthermore, population growth also plays a role in economic growth. As the population increases, there is a need for the factors of production such as labor to grow or become more productive. However, an optimal balance is necessary as overpopulation can lead to a lower standard of living.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. Growth in an economy is measured by a continual increase in the production of goods and services. As a result of economic growth, the standard of living improves, meaning people are making more money, the population is able to grow, and education levels rise.