ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Economists traditionally use gross domestic product (GDP) to measure economic progress. If GDP is rising, the economy is in solid shape, and the nation is moving forward. On the other hand, if gross domestic product is falling, the economy might be in trouble, and the nation is losing ground.

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 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.

Detailed explanation-4: -Economic growth refers to an increase in the size of a country’s economy over a period of time. The size of an economy is typically measured by the total production of goods and services in the economy, which is called gross domestic product (GDP). Economic growth can be measured in ‘nominal’ or ‘real’ terms.

Detailed explanation-5: -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.