GDP as a Measure of Economic Growth
GDP is defined as the total value of goods and services sold over a period of time. It is seen as a the most prominent measure of economic performance. The Reserve Bank of Australia released the current GDP figures on the 6 th of August 2021. Currently Australia’s GDP rate is 1.1%. Comparatively, China’s GDP rate is 7.9%.
(These statistics are perfect to use as evidence in you extended and short responses in class!)
In order to measure the economic growth rate, you calculate the difference in a nations GDP between two periods. This is shown by the formula:
Strengths and Weaknesses
GDP is the most notable measure of economic growth, however, as it is only a dollar value of goods and services, it fails to incorporate other factors that may influence society’s perception of economic growth.