ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The real economic growth rate is expressed as a percentage that shows the rate of change in a country’s GDP, typically from one year to the next. Another economic growth measure is the gross national product (GNP), which is sometimes preferred if a nation’s economy is substantially dependent on foreign earnings.

Detailed explanation-2: -A sustained period in which real GDP is rising is an expansion; a sustained period in which real GDP is falling is a recession.

Detailed explanation-3: -Economists use many different methods to measure how fast the economy is growing. The most common way to measure the economy is real gross domestic product, or real GDP. GDP is the total value of everything-goods and services-produced in our economy.

Detailed explanation-4: -The four phases of economic growth are expansion, peak, contraction, and trough. Tax cuts are generally less effective in spurring economic growth than are increases in government spending. If the rewards of economic growth go only to an elite group, then it is unlikely that the growth will be sustainable.

Detailed explanation-5: -GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.