Final answer:
A rise in GDP can overstate or understate the rise in the standard of living.
Step-by-step explanation:
A rise in GDP can overstate or understate the rise in the standard of living. While GDP measures the overall economic output of a country, it doesn't take into account factors such as human health, environmental cleanliness, and other non-monetary factors that contribute to the standard of living. For example, if a city experiences a surge in rebuilding construction activity after a hurricane, the GDP may increase, but it doesn't necessarily indicate an improvement in the standard of living for the residents.
It is important to consider a variety of indicators when evaluating the standard of living, such as life expectancy, education levels, access to healthcare, and environmental sustainability. By looking beyond GDP, we can gain a more comprehensive understanding of a country's overall well-being and quality of life.