ECONOMICS
BUSINESS CYCLES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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the worst the economy is doing
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the healthier the economy is.
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has no impact on the health of the economy
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all of the above
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Detailed explanation-1: -1. An increase in nominal GDP means an increase also in economic activity. Since nominal GDP accounts for all final goods and services in an economy at current market prices, growth in this economic measure can be attributed to either an increase in quantity or price.
Detailed explanation-2: -Faster growth in gross domestic product (GDP) expands the overall size of the economy and strengthens fiscal conditions. Broadly shared growth in per capita GDP increases the typical American’s material standard of living.
Detailed explanation-3: -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-4: -GDP matters because it shows how healthy the economy is Rising GDP means the economy is growing, and the resources available to people in the country – goods and services, wages and profits – are increasing.