👨🎓 How economic growth is measured
**5/52** Macro Mornings Education
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Hi everyone,
In our last email, we discussed the economic cycle and its impact on the economy.
Now, let’s delve into one of the most critical measures of economic performance - Gross Domestic Product (GDP).
GDP is the total value of all goods and services produced within a country’s borders over a specific period, usually a year or a quarter.
It’s the most commonly used indicator to gauge the health of an economy.
When GDP is growing, it means the economy is expanding, which is generally a good sign for businesses and consumers alike.
There are three main ways to calculate GDP:
The Production Approach: Adds up the value of output produced by every business within the economy.
The Income Approach: Adds up all the incomes earned by individuals and businesses in the economy.
The Expenditure Approach: …
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