2007-08-08 12:13:40 · 2 answers · asked by ♥ mommyof2 ♥ 3 in Social Science ➔ Economics
The first poster was wrong: GDP is the market value of all FINAL goods and services produced within a country in a given time period.
What determined how much a nation will produce? Well, the market for the goods that they have a comparative advantage. If the demand for the goods they have a comparative advntage increases, i.e. the demand curve shifts to the right, they will produce more of those goods, and thus, GDP will be higher. If demand decreases, the opposite affection occurs.
2007-08-09 15:47:08 · answer #1 · answered by Anonymous · 0⤊ 1⤋
GDP is the number of workers times the productivity of the workers. In most countries about 60% of the under 65 adult population is in the labor force but the fraction of of the population that are either too old or too young to work varies widely. The productivity of the work force depends on the capital investment and the education and training of the workers.
2007-08-08 21:29:02 · answer #2 · answered by meg 7 · 0⤊ 1⤋