Why is it bad if the GNP goes down?

Answer 1

A decline in Gross National Product (GNP) can indicate a shrinking economy, which often leads to higher unemployment rates and reduced consumer spending. This downturn can result in lower income levels and diminished living standards for individuals and families. Additionally, a falling GNP may signal decreased investment and confidence in the economy, potentially leading to long-term economic stagnation or recession. Overall, a declining GNP reflects broader economic challenges that can affect overall societal well-being.