tell me the importance of the GDP?

Answer 1

GDP (Gross Domestic Product) is the total value of all the final goods and services produced within the borders of a country over a particular time period.

GDP is used for a few things:

1. Measuring economic growth
We use GDP to measure economic growth. Real GDP is more accurate, because it takes the effects of inflation into account. Each year, GDP is analysed and we can work out if the country’s economic situation is improving.
Why do we want economic growth? Economic growth is all about raising standards of living through a better economy. So something as important as that needs to be measured to make sure we are on track.

2. Comparing the relative importance of sectors in a country
Economic development is categorised by the importance of each sector during different phases. For example, less developed countries tend to rely on their primary sector (like agriculture and mining), while developed countries depend on their services sectors. We can calculate the percentage of GDP from each sector to find the dominant sector, and use that to determine where we are in terms of development.

3. Comparing countries’ performances
GDP can be used to compare our country’s GDP or our economic growth to other countries.

But, like anything, GDP is not perfect, especially when you want to use it to compare prosperity across countries. Some of these shortcomings (there are more) include:
1. Unlawful income, although it increases some people’s standards of living, is not included in GDP figures.
2. GDP represents the market value of goods, not the personal value. So although a curio could be nearly worthless in terms of financial value, it may be important to someone. In this way, GDP does not accurately measure prosperity.
3. Obviously GDP can’t measure leisure time, or negative elements like pollution or crime, although they affect prosperity.
4. GDP deals with so many market participants, the actual figure will never be 100% accurate… so any statistic that you get from the GDP figures will never be 100% accurate.

Hope that helped :-)

Answer 2

GDP is measured in remote places funds fee of that usa for that 365 days yet few recognize it is likewise recorded in USD for all international locations.y-to-y advance is a fallacy because of the fact it contains inflation too in spite of if real GDP seems after this which no great organization, economist, usa will pay any heed to. Even in real GDP , the y-to-y advance is plagued via replace in valuation of remote places funds so purchase means Parity comes into image which is likewise omitted via above greats.real GDP with PPP is the the excellent option yet inconvenient element. PPP seems after USD equivalence interior the y-to-y expressions..

Answer 3

GDP is a measure.

It's important because it gives information with respect to other countries. That way, comparison can be made and pin point where sectors are poor and develop new policies to accommodate to those sectors to help improve the economy of the county.

Makes sense? I think so =) vote for my answer

Answer 4

Gross domestic product (GDP); shows increase in value of item per year, which indicates to buying power of the citizens & called as National growth. MORE GDP means more production. GDP = Production - consumption -export.

Answer 5

GDP signifies how much people can buy... it is a measure of human development vis-a-vis economic dev alone

Answer 6

so you can get a job that acually pays something