Can you explain GDP in layman terms?
How would you explain GDP to a 15-year-old?
How important is it to know what it is?
To a 15-year old- GDP means ‘Gross Domestic Product’ try to remember this abbreviation for now. Just like your doctor/mother checks your temperature to check your health, GDP is something which is used by economists to check the health of a country’s economy.
For example, if a country is healthy, i.e. when it has a growing economy, one can see low unemployment rates and an increase in wages, since businesses require more work-force to meet the needs of the growing economy. Whereas, low GDP indicates that the country’s health is not so well. It indicates lower earnings for those businesses which result in high unemployment rates and a decrease in wages.
A country’s economy is very important and it should be monitored since its health directly affects its people.
I tried to explain this to my 11 & 12 year old cousins. They got the idea of GDP!
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