Essay Gross Domestic Product ( Gdp )

911 Words Nov 24th, 2015 4 Pages
Gross domestic product (GDP) is a measure of the economy that measure the value of services and goods that UK produces with in 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 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 being the measure of economy. Additionally, Compare GDP against GNI 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 summarise as to whether or not the limitation is worth overlooking when considering the right method of measuring the economy.
Gross domestic product (GDP) is the total value of all goods and services produced in the economy during a specified period of time, such as a year or quarter. Improvements in the economic well-being of individuals in any society cannot occur without such an increase in real GDP. Real GDP per capita is real GDP divided by the number of people in the economy. When real GDP per capita is increasing, then the well-being- or the standard of living- of individuals in the economy, at least on average, is improving. At present the measurement of an increasing Gross Domestic Product (GDP) is said to represent well-being. This indicator has been used…

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