Question

Explain how economic growth is usually measured. (20 marks)

The economist Robert Gordon has suggested that economic growth in the future is likely to be lower than in the twentieth century. Explain whether or not you are convinced by his arguments. (80 marks)

Answer 1

How economic growth is usually measured?

It is defined as the expansion of a nation's capability to produce the goods and services it's people want.

The terme economic growth refers to increase over time in a country's real output of goods and services or more appropriately per capita.The term 'economic development',in contrast,is more comprehensive.It implies progressive changes in the socio-economic structure of a country.

There are different methods to measure economic growth and development. But usually economic growth will be measured with the help of GDP.

GDP is the important method to measure economic growth.

It is nothing but the sum of final good and services that are produced within the country.but it doesn't include unfinished goods.

It helps to know the per capita income as well as it helps to estimate the standards of living of the people within the country.

But there are some flaws in getting real picture of the economy as it doesn't include unpaid services.And the GDP can't reflect the economic problems,and not even can't show the real iving standards of the people.

Even though the GDP has some disadvantages,we find it usefull to show the growth of the country to the world.

Q2 answer

The economist Robert Gordon has expressed his views,that the technological changes may effect future of the economy to fall.

In his views the obsession of the technology or widely using technology can give rapid growth to the economy.But can cause fall in growth in future.

He questions about the actual productivity with that technology.

But I'm not convinced with his views.

Because I feel the progressive chande is the real growth of the world or any economy.

The technology may be the replacement of the labour sometimes.But it creates employment to lot of people.

It reduces the hard work,and helpful to follow new methods of production.

In reality in the resent years USA is the largest economy(in the year 2018).

And it is the 2nd largest in terms of it's purchasing power parity.And also has the world's 8 highest per capita GDP.

So I'm not convinced with his suggestion.