Economic Growth Of Real Gross Domestic Product Essay

1151 Words Oct 22nd, 2015 null Page
Real Gross Domestic Product also known as, GDP, is how economist determine if a nation is growing or shrinking in size. It is never at the same level each year. In 1652, William Petty, came up with the basic concept of GDP to defend landlord’s against unfair taxation during warfare between the Dutch and English. Later, Simon Kuznet, developed the modern concept of GDP for a US congress report in 1934. GDP keeps everyone in the economy informed of economic production and growth. A significant change in GDP generally has an effect on the stock market. Investors worry about negative growth which is one of the factors that economist use to determine whether an economy is in recession. Inflation is the average level of prices increasing and deflation is the average number of prices decreasing. If GDP has too much growth it will likely cause an increase of inflation. Inflation is one of the most important issues in economics. The most significant ways inflation is measured is consumer price index and the retail price index. Inflation rates are expressed as percentages. Every month the ONS collects more than 100,000 prices of goods and services to calculate inflation. Unemployment is people that are willing and capable of working, presently not working. Unemployment results in economic losses. Unemployment often has elements such as; poverty, lack of education, and health diseases. Sometimes an individual looking for their first job can have difficulties since they lack…

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