ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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.

Detailed explanation-2: -What’s the best way to gauge the health of the economy? Gross domestic product, a measurement that calculates the value of all goods and services produced, has long been a good way to take the financial temperature of the country. Economists use it to determine whether a nation is in an expansion or a recession.

Detailed explanation-3: -Gross domestic product tracks the health of a country’s economy. It represents the value of all goods and services produced over a specific time period within a country’s borders. Economists can use GDP to determine whether an economy is growing or experiencing a recession.

Detailed explanation-4: -Because most people would prefer to receive higher income and enjoy higher expenditure, GDP per person seems a natural measure of the economic well-being of the average individual.