GDP stands for gross domestic product, which is the output of all of the goods and services in the economy (Miller). GDP calculates the overall economy within a country, by calculating how much a country is produces and sells. The purpose of GDP is to measure the health of each country (WEBSITE). It is usually measured based off of what it was in the past. For example, if a country’s GDP is up 2% from last year, the country’s GDP and overall health of their economy has grown 2%. Measuring the GDP of a country benefits everyone included in that economy. If an economy is healthy, then there is a good chance that the unemployment rate will be lower, which is always good for an economy.
When comparing different countries, the limitations of GDP can sometimes cause some issues. This is because countries have different regulations on certain things, which may or may not be included in the GDP. This makes a huge difference in the GDP markets because if one country has something that can be included in the GDP. This can become a problem when comparing the GDP of other countries. GDP is a very good reference to a country’s market value and prices that go along with it, but it does not always refer to the way it will affect the well-being of a country. The market’s price and production may increase, but with that comes issues such as with a country’s natural resources.
