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The main condition for declining standard of living in a country when it is plagued with recession. During recession, the purchasing power of the ordinary people goes down, leading to declining standard of living. The other reason for declining standard of living may be external debts,adverse balance of payment position example Greece, Spain. Meeting the bare needs to sustain living is not the only parameter, when the common people,after meeting the basic requirements have surplus fund for savings,minimum recreation can be adjudged as civilized standard of living.

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Q: What conditions does a declining standard of living most likely to create in a country?
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