ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The economic growth-rates of countries are commonly compared using the ratio of the GDP to population (per-capita income). The “rate of economic growth” refers to the geometric annual rate of growth in GDP between the first and the last year over a period of time.

Detailed explanation-2: -GDP per capita provides a basic measure of the value of output per person, which is an indirect indicator of per capita income. Growth in GDP and GDP per capita are considered broad measures of economic growth.

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: -Annual growth rate of real Gross Domestic Product (GDP) per capita is calculated as the percentage change in the real GDP per capita between two consecutive years. Real GDP per capita is calculated by dividing GDP at constant prices by the population of a country or area.

Detailed explanation-5: -GDP is the most commonly used measure of economic activity and serves as a good indicator to track the economic health of a country. Economic growth (GDP growth) refers to the percent change in real GDP, which corrects the nominal GDP figure for inflation.