Although this is not strictly a GCSE topic, this mnemonic has proved invaluable in teaching the limitations of GDP as a measure of living standards at A2. At GCSE you could pick bits out to explain why a high GDP does not always mean high living standards.

SPICEPAWS

S = Shadow economy = 13%
P = Per capita (May already have been taken into account)
I = Inequality of Income (Lorenz Curve)
C = Cost of Living (PPP $ or PPP £)
E = Exchange Rate
P = Political Party factors – Government spending / Taxation
A = Accuracy
W = Wealth = social capital
S = Social Costs

Question to go with mnemonic from the AQA A2 course

A recent EU survey reported that income per head was significantly lower in Greece and Portugal than in the Netherlands and Ireland. Evaluate the view that living standards in the Netherlands and Ireland must therefore be higher than those in Greece and Portugal. (25 marks)