What you'll learn
How economic performance and living standards are measured.
Key ideas
- GDP and GDP per capita; real GDP is adjusted for inflation.
- Inflation is measured by the CPI; the unemployment rate.
- Living standards use GDP per capita and the HDI.
Exam tips
- Distinguish real from nominal GDP.
- Use several indicators for living standards.
Common mistakes
- Confusing real and nominal GDP.
- Relying on GDP alone.