NAMA : ERWIN ANGGORO

NIM : 042940054

PRODI MANAJEMEN

TUGAS 2

BAHASA INGGRIS NIAGA/ABDI4201

The number of GDP can always tell whether a country is prosperous or not.

Do you agree or disagree to the statement?

Answer :

The Gross Domestic Product (GDP) of an economy is a measure of

total production. More precisely, it is the monetary value of all final goods
and services produced within a country or region in a specific time period.
Comparisons over time and across borders are complicated by price, quality
and currency differences, as explained below. GDP itself is the main measure
of a country's economic productivity. A country's economic GDP shows the
market value of the goods and services it produces. Legislators use GDP when
making fiscal policy decisions. The central bank's economy uses GDP as an
important factor influencing monetary policy action.

GDP per capita is often analyzed together with GDP. Economics uses
this metric for insights on their own domestic productivity as well as
productivity compared to other countries. GDP per capita considers the GDP
and population of a country. Therefore, it is important to understand how each
factor contributes to the overall results and how each factor influences GDP
per capita growth. There are several ways to analyze a company's wealth and
prosperity. GDP per capita is the most universal because its components are
regularly tracked on a global scale, providing ease of calculation and use. Per
capita income is also the second alternative for global prosperity analysis,
although this is not widely used.

GDP per capita shows how much the value of economic production can
be attributed to individual citizens. This means a measure of national wealth
because the market value of GDP per person is also ready to function as a
measure of prosperity. If a country's GDP per capita grows with a stable
population level, then it has the potential to be the result of technological
advances that produce more with the same population level. Some countries
may have high GDP per capita but a small population which usually means
they have built a self-supporting economy based on many special resources.
 Thus, a country may have consistent economic growth but if its
population grows faster than its GDP, GDP per capita growth will be negative.
This is not a problem for most developed economies, because the rate of
economic growth that is still warm can exceed the rate of growth of their
population. However, countries with low GDP per capita levels can initially
have rapidly increasing populations with a small GDP growth that results in
erosion of stable living standards.