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The only way a nation's average citizen's standard of living can rise is if production grows more quickly than the population.
What raises a nation's quality of living?
Real gross domestic product (GDP) per-capita is the accepted yardstick for determining a nation's standard of life. GDP is the sum of all the goods and services a nation produces, thus as overall productivity rises, so does GDP per person, raising overall living standards.
What changes in the standard of living occur as the population grows?
Real GDP per capita is calculated by dividing the standard of living by the ratio of real GDP to population. Therefore, when economic growth—that is, the growth rate of real GDP—exceeds (declines below) the rate of population growth, the standard of living rises (falling).
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