Why All Countries Need Economic Power

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 …show more content…
High unemployment rate hurts in the real GDP and because of this level of unemployment, people face the high rate of poverty, poorer health outcome, lower self-esteem, etc. Any country facing unemployment when workers are leaving jobs, switching careers and moving between the jobs. These things affect the overall economy. When we see the recession of 1990s and compare it to 2008, real GDP faces too much and the recession affect the unemployment rate as we see in the articles and statics Canada show us that what was the difference in real GDP and the unemployment rate at that moment and the in 2008 year. Statics Canada demonstrates the difference in 2008 to 2011. If any country wants to maintain the GDP, it is good if they create, more jobs and because of that, no one has to face the unemployment. GDP and unemployment have opposite but a direct relationship. Because, these two have the common thing that if the unemployment decrease, then the real GDP will increase and if the unemployment increase, then the GDP will be