ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economic growth leads to increased revenue and profitability, which can create some great opportunities for your business.

Detailed explanation-2: -In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well. When real GDP is growing strongly, employment is likely to be increasing as companies hire more workers for their factories and people have more money in their pockets.

Detailed explanation-3: -GDP enables policymakers and central banks to judge whether the economy is contracting or expanding and promptly take necessary action. It also allows policymakers, economists, and businesses to analyze the impact of variables such as monetary and fiscal policy, economic shocks, and tax and spending plans.

Detailed explanation-4: -Recurring fluctuations in level of economic activity are called the business cycles. a. During an expansion phase of the business cycle, real GDP is increasing.

Detailed explanation-5: -when real GDP increases, there are more goods and services to be bought. More money will be needed to purchase them. On the other hand, a decrease in real GDP will cause the money demand curve to decrease.