Basic Terms to Understand Financial Success

1383 WordsFeb 19, 20185 Pages
Today’s economy is constantly changing for better and for the worst. In order to become the most successful person you can be, you must know the in’s and out’s. Starting with a few basic terms are vital to understanding how to benefit and become a successful person. The term “GDP” the Gross Domestic Product which is the total value of goods produced and services provided in a country during one year, and the “GNP” is Gross National Product is the market value of all the products and services produced in one year by labor and property supplied by the residents of a country, these two things go hand and hand because they affect our economy and the fluctuations of our economic activities that happen over a period of time which is a Business Cycle. How does this affect you? Depending on our countries state, we could be in an expansion which is good because that’d mean our economy is growing, peak meaning our economy is at a high point , recession which is a decline in the economy, a trough meaning it’s at the bottom or recovering meaning it’s getting better. If the economy is in a recession there would be high unemployment and low GDP and GNP means for some little to no income or it could help if the stage of our economy is growing or expanding leading to more job opportunities, more revenue for the GDP and GNP overall resulting in a stable strong economy. So your job is a key factor in how our economy is doing. Unemployment occurs when a person who is actively searching
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