Tete-a-Tete about Economics!!
Economics is one of those terms which are widely used but least known. Knowingly or unknowingly we come across economics lot of times in our day to day life. We buy a product and its cost is based on economics and our salary hike which is also based on economics. This article is to throw some light on one of the key indicators of Economics.
GDP is one of the key indicators of economics which stands for Gross Domestic Product. GDP represents the market value of all goods and services provided by the country during the measured period. GDP calculation includes personal consumption, private inventories, government purchases, foreign trade. The amount of exports the country does will be added and the imports will be subtracted. The final value arrived after calculating this will be presented as a percentage growth compared to the previous year (mostly annualized basis).
The main advantage of GDP is if the GDP growth percentage is high, it means the country is doing well and there are lots of opportunities available for business. So the market will improve and the country will attract more investors. This will further increase the economy. But that is also dangerous as well.
If GDP goes too high, then the prices of all the products will be increasing and we will end up facing Inflation!! What about low GDP then?? If GDP goes negative for two quarters or if it stays still without improvement we will end up facing Recession!!
Striking the balance. This is the challenge every country faces every time!!
Posted by Teen Dudes at 12/19/2009 3:55 PM 
Categories: economic,computers,Education,business
Tags: Gross Domestic Product Recession investors Economics Inflation GDP market economic indicator
Categories: economic,computers,Education,business
Tags: Gross Domestic Product Recession investors Economics Inflation GDP market economic indicator
Hey nice post and quite informative too!
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