Economic Growth For Social Welfare Payments And Unemployment Programs

1777 Words Sep 25th, 2016 8 Pages
Discuss Question 1
1.Discuss why does economic growth not include spending for social welfare payments and unemployment programs.
1) The economic growth is the increase in the inflation-adjusted market value of goods and services produced by an economy over time. Economic growth represents a positive or negative economic situation over a period of time. When we adjust the economic growth, usually look at the total income that everyone in the economy is earning. There are usually two ways to measure economic growth, GDP and GNP.

2) GNP (gross national product) refers to a country 's nationals have all the elements of production in a certain period of time produced by the final product of the market value. By contract, GDP, gross domestic product refers to the market value of all the final products (goods and labor) produced by the economic society for a certain period of time. Is a regional concept. Compared to GNP, GDP is easier to measure accurately, and can better reflect the employment situation in a region. Therefore, the economic growth in a particular area, usually used to the GDP measure method to assess.

3) GDP specific adjusts method, is accounting for the sum of consumption (C), business investment (I), government purchase (G) and net exports (NG) in a country or region during a given period of time. The calculation formula of GDP is as follows: (1) Consumption: including the purchase of goods (mobile phone, clothes) as well as services (health…

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