How the Gross Domestic Product Plays a Major Part of our Economy

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GDP (Gross Domestic Product) plays a major part of our economy. It is the total market value of all final goods & services produced in a given year by factors of production located within a nation’s borders. It continually changes every year, and it is never known when or how it will change until the end of each quarter. It may rise 3 percent one quarter, and then decline to 2 percent another quarter. There are immense amounts of things that could affect GDP resulting in a decrease in the economy. Changes/affects due to the expenditures approach or the income approach could mess with GPD as well. Unemployment, underemployment, and discouraged workers can cause GDP to take a downturn because if people are unemployed, under-employed, or their discouraged workers, less productions of manufactured products are happening, thus negatively affecting GDP and the economy.
As of today, there are millions of women and men that are currently unemployed. This unfortunate problem is negatively affecting the economy. With the economy getting affected, it causes GDP to take a downturn as well. When there are millions of people that are out of work, fewer productions are being made. Unemployment is defined as a situation where someone of working age is not able to get a job but would like to be in full time employment. (Pettinger 1) Perrucci If there are currently millions of people out of work, then GDP is going to go down. There are currently many different types of unemployment. The four types of unemployment: frictional, structural, cyclical, and seasonal. Frictional unemployment occurs when workers lose their current job and are in the process of finding a new one. (Unemployment types and causes 3) Structural unemployment occurs when certai...

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...fect which causes the economy and GDP to decrease.

Works Cited

Pettinger, Tejvan. "Economics. Help." . N.p., 3 Jun 2010. Web. 31 Mar 2014.
Hudson, Paul. "How Unemployment rates affect the economy." elite dailiy. N.p., 21 April 2013. Web. 31 Mar 2014.
"Unemployment types and causes." Economics Online. N.p.. Web. 1 Apr 2014.
"Useful Definitions ." Economic Policy Institute. N.p.. Web. 1 Apr 2014
Forstater, Mathew. "Unemployment and Underemployment." Encyclopedia of Race and Racism. Ed. Patrick L. Mason. 2nd ed. Vol. 4. Detroit: Macmillan Reference USA, 2013. 213-220. Gale Virtual Reference Library. Web. 30 Mar. 2014.
Perrucci, Carolyn C., and Robert Perrucci. "Unemployment." Encyclopedia of the Life Course and Human Development. Ed. Deborah Carr. Vol. 2: Adulthood. Detroit: Macmillan Reference USA, 2009. 483-486. Gale Virtual Reference Library. Web. 30 Mar. 2014.

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