Gdp And The Economic Performance Of A Country

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Charles Sturt University Name: Sunil Beniwal Lecturer: Harpreet Kaur Subject: ECO 130 Assessment -3 Date: 30 January 2015 Answer – 1) GDP plays an important role in macroeconomic. GDP means Gross Domestic Product. GDP is market value of all goods and services produced within a country during a time of period. GDP is used to measure the economic performance of a country ((Layton et al 2012). GDP is the evaluation of business sector throughout, including the estimation of all last merchandise and administration that are delivered and exchanged for cash inside a given time of period. To calculate the Gross domestic product (GDP), government use income and expenditure approach. Expenditure means the expenses to produce final goods…show more content…
As a result unemployment rate goes down. On the other hand when actual GDP is smaller than natural GDP means the economy is producing less and employing only few people. B). Due to the some complex methods which are used in estimating GDP and the sheer enormity of the task, GDP is necessarily a less perfect measure of a nation pulse. However, measuring the GDP of any nation plays a important role in influencing government economic and social policies. Therefore, there are some false views that measuring GDP of any nation may put wrong impression of a nation well-being material. ( Layton, Robinson, and Tucker, 2009). According to the World Bank website, Australia has 924, 843,128,521 US$ GDP in the year 2009 and the total oof 22,328,800 population in the year (World Bank, 2012). economic growth of a country is considered to be good because it allows people of country to have higher standard of living. However, an increase in real GDP doesn 't tell the average person is living better life or not. The problem is that there is no measurement how income is paid. Like the national economy is growing, but poor people may live poor and reach can become more reacher. The GDP doesn 't tell the accurate data of health of a nation by comprehensive method. The GDP measures the nation economic performance by the market value of final goods and services. Using these measures had
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