Why do economics measure the gross domestic product?

Answer 1

Economists use real GDP per capita rather than simply real GDP. This is because population growth is an important variable (per capita), and so, real GDP per capita is the more accurate measurement of the GDP.

Answer 2

Economists measure the gross domestic product to see how much economic activity there is in a particular country.

Answer 3

Gross domestic product (GDP) is important as an economic indicator of a region. GDP measures the total level of economic output. It allows for comparison of economic strength, growth, and specialisation of regions.

Answer 4

GNP is an alternative term for national income. It is the key-measure of the overall performance of the national economy i.e, total output in different sectors of the economy.