can anyone tell me what is GDP and what is the significance of it?

Question

in detail plz

Answer 1

Gross Domestic Production

It's a measure of the gross (before expenses) value of all manufactured goods in a country or region. It's an indication of how well the economy is doing in a particular place.

Answer 2

GDP is Gross National Product. It's counter part is the GNP or Gross National Product. It is the sum total of Consumption in an Econcomy, Ivestements, Government spending. If you add net of Exports and imports then you have GNP. Otherwise GDP. It is a meassure of all goods and service produced in an Economy for a whole year. It tells how fast your economy is growing. Consumption and Investments are injections to an economy meaning that will drive the GDP up. Taxes and savings are leakages meaning more of this will drive the GDP down. That is why taxes are used as a control to maintain planned growth in an Economy. If growth is higher then Economy tend to get overheated so taxes are raised to maintain planned growth or restrictive policies are elicited like controlling the Money supply or changing the Bank reserve requirement. If GDP falls for two quarters then we call the state in Recession. Then stimulating policies are employed. If there is high wages and high inflation along with fall in employment then we have stagflation. Again this is countered with adequate policies accordingly if the unemployment is structural, frictional or transient. Usually if it is structural then manufacturing and employment stimulating policies are put in place. If frictional then retraining of existing employees are undertaken or subsidies are allocated for the same and so and so on the economy grinds on from year to year basis. So long.

Answer 3

Gross Domestic Production is the sum of all economic activity in the country. If it grows too fast, it can spark inflation. If it grows too slow, it signifies a major economic recession.

The deficit is often put into "perspective" vs. Gross Domestic Production to make it seem less problematic, although this is more of a political trick than anything that should be taken seriously. The idea is that taxes on a larger GDP will produce more tax revenue, making the deficit less significant. This is filled with flaws, however, including the fact that most taxes are paid by individuals, not through taxes on business profits. Also, gross domestic production can include economic activity generated by the government spending itself.