Gross Domestic Product ( Gdp ) A Measure Of The Economy Essay

899 Words Nov 25th, 2015 4 Pages
Gross domestic product (GDP) a measure of the economy that measure the value of services and goods that the UK produces within a given period. This gives an indication of how healthy a country’s economy is. Some, for example, J. Steven Landefeld (1999) discusses the importance of GDP being the measure of the economy, whereas, Joseph Stiglitz (find date) argues the weakness as it doesn’t include the country’s overall happiness. This essay will analyse the relevance and the limitation of GDP per capita being the measure of the economy. Additionally, Compare GDP against an alternative measure of the economy, Gross national product (GNP) as they are both a measure of the economy but consider different aspects of the economy. Finally, in the conclusion the relevance of GDP per capita will be summarised as to whether or not the limitation is worth overlooking when considering the right method of measuring the economy.
The gross domestic product originated after the world war2 and the great depression in 1937. simon kuznet(1937) an economist of his time presented the formulation for GDP as a measure to keep track of production, having formulated the equation of taking the sum of consumer spending, government spending, business spending and net exports to provide the overall GDP, Needed figures are gained by government survey with in a geographical sector. GDP can be carried out as a year or quarter. Improvements in the economic well-being of individuals in any country cannot…

Related Documents