Question

Write an Essay/ research paper from following topics:

unemployment

• GDP

• poverty

• taxes

• economic growth

• inflation

• quantity theory of money etc.

Requirement 2 pages

Answer 1

The topic is economic growth

Economic growth is an increase in the production over a given period of goods and services. To be most accurate, the measurement must eliminate the inflationary effects.

Economic growth is generating more profit for companies. As a consequence stock prices are rising. That gives businesses the capital to invest and hire more staff. As more jobs are created, revenues increase. Consumers have more money to purchase supplementary products and services. Acquisitions are driving higher economic growth. It is for this reason that every country wants positive economic growth. This makes economic growth the economic indicator most watched for.

Real GDP is the most accurate measure of the growth. It does away with the inflation effects. The rate of growth of GDP makes use of real GDP. To measure growth, the World Bank uses gross national income, rather than GDP. It includes income remitted by citizens who work abroad. For many emerging market countries like Mexico it's a critical source of income. Country-by-country comparisons will understate the size of the economies of those countries.

GDP does not include services which are unpaid. It leaves out child care, unpaid volunteer work or illegal activity on the black market. It does not count the costs to the environment. For instance, the plastic price is cheap because it doesn't include the disposal costs. As a result, GDP does not measure how those costs impact society's well-being. A country will improve its living standards when it is factoring in environmental costs. A society measures only that which it values.

Economic growth is one of the key indicators of a sound economy. One of the biggest impacts of a country's long-term growth is that it has a positive impact on national income and employment levels, which raises living standards. As the country's GDP increases, it is more productive that leads to employing more people. That increases the country's wealth and its population.

Higher economic growth also leads to additional tax revenue for government spending which can be used by the government to develop the economy. They can also use this expansion to reduce the budget deficit.