Economic Growth and GDP: The

Relationship
Economic Growth and GDP
GDP- primary indicator of health and size of a
country's economy

Economic Growth and GDP: The

Relationship (contd.)
Countries with healthy economies
Tend to produce more goods
Have higher GDPs
Could be said to be the most productive

When the economy is healthy,

Low unemployment
Increased wage: businesses demand labor to meet the
growing economy

Economic Growth and GDP: The

Relationship (contd.)
A growing GDP represents
expansion within a country's economy
signaling that it is in the process of becoming more
productive

A bad economy usually means

lower profits for companies
lower stock prices, negative GDP growth,
Recession

Economic Growth and GDP: The

Relationship (contd.)
Types of Economic Growth and relation with GDP
Economic Contraction
Economic Trough
Economic Expansion
Economic Peak