Why GDP is
an important indicator of an economy?
GDP is an important macroeconomic indicator of an economy because :
- GDP shows the productive capacity of the economy.
- Rising GDP implies rising employment opportunities.
- With an increase in GDP, the economy can earn foreign exchange through increased exports.
- Higher level of per capita GDP implies a better living standard.
- Per capita GDP and economic growth help make a comparison of the economies at international level.
- Several variables are compared in relation to GDP. So GDP is called denominator variable. For example, trade GDP ratio, revenue GDP ratio, tax GDP ratio, debt GDP ratio, expenditure GDP ratio, investment GDP ratio, etc.
यो पनि पढ्नुहोस
No comments:
Post a Comment