why country economy is depend upon GDP
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As the country's GDP is increasing, it is more productive which leads to more people being employed. This increases the wealth of the country and its population. Higher economic growth also leads to extra tax income for government spending, which the government can use to develop the economy.
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GDP enables policymakers and central banks to judge whether the economy is contracting or expanding and promptly take necessary action. It also allows policymakers, economists, and businesses to analyze the impact of variables such as monetary and fiscal policy, economic shocks, and tax and spending plans. GDP is important because it gives information about the size of the economy and how an economy is performing. The growth rate of real GDP is often used as an indicator of the general health of the economy. In broad terms, an increase in real GDP is interpreted as a sign that the economy is doing well.
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