Why might an increase in Gross Domestic Product improve the standards of living in the country? [6marks]
It is true that increase in GDP improves the standard of living of the country. This is due to various reasons. Firstly, increase in GDP means increase in the total output of the country. Increase in production means increase in the employment level of the country. Secondly, when more people are employed the national income and the income of the people also increase and most of the people will be self sufficient in managing their own life. Thirdly this increase in output might be in the form of improvement in different sectors like education , healthcare , infrastructures etc which intern bring further development in the long run.
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