What is the GNP growth rate and how is it used as an economic indicator?

Economics Economic Indicators Questions



80 Short 30 Medium 47 Long Answer Questions Question Index

What is the GNP growth rate and how is it used as an economic indicator?

The GNP growth rate refers to the percentage change in Gross National Product (GNP) over a specific period of time, usually a year. It is used as an economic indicator to measure the rate at which a country's economy is expanding or contracting. A positive GNP growth rate indicates economic growth, while a negative growth rate suggests economic contraction or recession. It helps policymakers, economists, and investors assess the overall health and performance of an economy, identify trends, and make informed decisions regarding fiscal and monetary policies, investments, and business strategies.