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Low level of saving and/or high population growth condemn a country to a low GDP/head in the long run (unless there is a TFP growth).
Is GDP a Perfect Measure of Living Standards?
Economists estimate the average standard of living in a particular year in a particular country by taking the real GDP and dividing it by population. The ratio is called GDP per capita. This gives the average amount of income that each individual of the population potentially has access to. The more money each individual is able to access the higher the potential standard of living. GDP per capita is the usual measure of the standard of living...
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