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How to gdp are work in economic development

I want understand how gdp are working in economic development

Your Answer

Lets try to understand the whole process with an example.br /Lets take an example of an individual's house. Suppose in year 2000 , the individual has total property net worth of ₹100000 where property can be any product inside the home ex- TV, fridge, AC etc.br /In year 2005 i.e 5 years later his total property worth increases to suppose ₹ 500000 i.e if we compare it to the year 2000 we can easily see that the individual has 5 times more property i.e he has grown 5 times when we compare him with 5 years before.br /Exactly this examples works in our nation.br /Where the individuals home is a country.br /Individual Property means all the products present inside the boundary of the country.br / Total value of all these product is termed as GDP . Hence the total growth of a nation is calculated by the GDP of the nation.

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