Explain economic development with two social indicators
Answers
Economic development refers to the overall increase in development of an economy, in absolute or relative nature.
Economic development refers to the process by which a nation improves its various social forms like economic, political, as well as social welfare of the people.
Social indicators are the measuring devices which show the statistical analysis, which then helps to understand how much development is taking place in a countrys economy.
Many indicators are used, but i have chosen two, well known social indicators.
INDICATOR 1: CPI (Consumer Price Index)
The consumer price index, refers to the measuring tool, which shows the inflation rate. It measures the inflation rate.
Where inflation, is the general overall rise in the prices of all the goods and services of a country.
By using this index, the GDP will be inflation adjusted, therefore we can next deduct it, and find out the GNP.
(GDP being Gross Domestic Product, i.e total output of a country.
(GNP being Gross National Product)
To get to know the real value.
INDICATOR 2: HDI INDEX
HDI: Human developmental Index
This indicator shows us that not only should the economic growth determine the development but the welfare of people and their capabilities, must be a part of economic growth too.
It tells us about the standard of living of people, answering our frequently asked question of how is a country developing if rich gets richer and poor gets poorer.