Essay on The Domestic Product And The Unemployment Rate

794 Words 4 Pages
All countries need economic power to support them. Economic power is divided into many categories such as market power, purchasing authority and worker power, etc. To understand the economic power, we need to know the Gross Domestic Product and how it affects and how the GDP is connecting to unemployment rate Furthermore, is there a direct but opposite link between the Gross Domestic Product and the unemployment rate? The value of all final goods and services produced in a country in a year, we call this measure Gross Domestic Product (GDP) (Class notes, week 9). For example, if there Is an increasing demand for products, this will lead to an increased rate of production hence forcing companies to hire more people. Eventually, the rate of unemployment is decreasing. If there are lower in demand, maybe the worker or the owner of the companies perhaps face the inflation and if there is inflation, then lots of workers have to lose their jobs and we will face the recession and there are lots of peoples who will be unemployed. To define the unemployment, we can say that we can say that when the economic growth is two-quarters of downtown means when the rate of business activity is consistently less than its long-term trend or it’s negative (Class notes, week 7). "The report presented by statistic Canada displays the substantial fall in GDP during the Canadian recession of 2008, the real GDP fell to -1.3% and keep decreasing until 2010 when it went back up to 1.0%, according…

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