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Economic Growth (GDP)

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April 6, 2020
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gross domestic product tracks economic growth by measuring all goods and services This is a topic that many people are looking for. star-trek-voyager.net is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, star-trek-voyager.net would like to introduce to you Economic Growth (GDP). Following along are instructions in the video below:

“There let s take another quick look at an economic concept. That s important for for business students. It s the concept of economic growth as measured by changes in thing called gdp economic growth. The business cycle and the associate concept of gdp just one of several economic influences on the business gdp is short for gross domestic product.

So what on earth is that well do you pick gdp is a measure. An official statistic of the measure. The value of all the economic activity that takes place in an economy over a particular period of time for example a month a quarter or a year 12 months. And this measure tries to take account of all the measurable economic activities spending by consumers households spending investment by businesses across the sector s service sector.

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Construction manufacturing. But also economic activity by government for example government spending in the economy tries to add it all up you get to a total for the value of gdp and then a percentage change is calculated. If gdp has risen has grown from one period to another then the economy is growing and you have economic growth. If gdp if the value of goods and services or economic activity is falling.

Then you have economic contraction. The value of gdp is falling. So the most important thing to remember gdp is a measure of economic activity tries to encompass all economic activity and it s the percentage change in gdp that gives you the rate of economic growth. And this links in with a concept on which we ve done a separate business video all about the business cycle.

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The so called business cycle or economic cycle. Which shows a common pattern of ups and downs in the rate of gdp or the rate of economic growth. So i ll let you have a look at the other video on the business cycle. But essentially just tries to predict the typical peaks and troughs a boom.

When there s high and positive and rising gdp growth. A recession. When you have two courses six months of declining gdp growth or declining gdp. Sometimes for longer than that as well you get to the bottom of the recession.

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And then you start to see the rate of growth of gdp rising again as you enter the recovery phase. And then hopefully you get into another period of sustained economic growth perhaps even another boom. But i ll let you have a look at that video on the business cycle to explore more about the implications of that for businesses just finish off with here is a chart on the screen. There that shows the annual change in gdp.

The rate of economic growth over the last 10 years also and you can see that we ve only had one period where economic growth was negative. We took place at the the start and during the financial crash end of 2007 through to midway through 2009 gdp was negative thereafter. The uk economy has grown at around about 2 percent. Sometimes a little bit above.

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But around about 2 per year. There we go then that s an introduction to this concept called gdp. ” ..

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