Living standards
What Living standards means in Economics A-Level, as defined for AQA.
Definitions of Living standards
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Reference: AQA
Average standards that rising real national income typically correlates with improving, though income inequality is ignored by the measure.
Average material wealth and purchasing power, which national income data can estimate as improving or falling over time.
Something that can decline when prices rise faster than wages, masked by a 'money illusion' from rising nominal incomes.
Reduced by job loss, which lowers disposable income and increases the risk of poverty for individuals.
Real material welfare, measured by how many local goods a local income can actually buy.
An aspect of well-being that economic development improves, alongside human capital.
Topics that use Living standards
- Economic growth and development (AQA A-Level)
- Employment and unemployment (AQA A-Level)
- The circular flow of income (AQA A-Level)
- Uses of national income data (AQA A-Level)
Related terms
- Economic growth
- Negative output gap
- Causes of unemployment
- Circular flow of income
- Claimant Count
- Cyclical unemployment
- Economic development
- Economic welfare
Using Living standards in the exam
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