... living. Lastly, standard of living can be calculated by how much time it takes an average person to earn enough money to buy certain goods. In other words, if people have to work less time in order to buy the same goods then the standard of living has increased. However, an increase in the standard of living may not mean a better life-style for the majority as the wealth may not be spread out evenly, the increase in output brings an increase in congestion or pollution, leisure time is shortened to produce the goods and there is an increase in the amount of stress and anxiety. Economic growth, by definition, is an increase in national income over a period of time. The national income statistics must, however, be displayed in real terms (i.e. with the factor of inflation taken out). National income usually rises each year but the rate of growth ...

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