Final answer:
GDP at purchasing power parity is the method of measuring poverty that accounts for cost of living, providing a more accurate representation of an individual's purchasing power within their own country.
Step-by-step explanation:
The method of measuring poverty that takes into account the cost of living is GDP at purchasing power parity (PPP). Unlike per capita GDP, which is an imperfect measure because it does not account for how the cost of living differs from country to country, GDP at PPP adjusts for price level differences between countries.
This provides a more accurate representation of the purchasing power individuals have within their own country, and hence a better measure of relative poverty.
Therefore, the correct answer to which method measures poverty considering the cost of living is (d) GDP at purchasing power parity.