growth rates over time

• What does changing national income levels indicate?

  Whether the country has grown or shrunk
• Why is it important to compare national income data to other countries?

  To put figures in context
• How can growth figures be used to evaluate a country's performance?

  By comparing against similar countries
• What does growth in national income imply about living standards?

  It indicates a rise in living standards
• What is the significance of using real, per capita figures?

  To provide accurate comparisons despite population growth
• What can cause a rise in GDP without an increase in living standards?

  Population growth over time
• What does real GDP account for?

  The effect of inflation
• What is inflation?

  Rising prices of goods and services
• How can inflation affect perceptions of GDP growth?

  It can create an impression of growth without real production