Sunday, October 30, 2011

How much is your country worth?



For years now the wealth of a nation has been layed down into one simple mathematical formula

Private consumption+Gross investment+Government Spending +(exports-imports). All this adds up to a single number which determines whether banks will loan to your nation without a second thought or if your country is a wall street nightmare. This number is GDP and it stands for Gross Domestic Product. GDP is measured quartly by the BEa and done on an international standard. A nations GDP once determined can determine how much money banks will be willing to loan that country including the world bank and the IMF.GDP also effects people every day if the GDP is rising quickly the federal reserve will be raising interest rates but if its not layoffs begin to occur. GDP has almost come to be the symbol for jobs in America and even the rest of the world.

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