Why is tracking GDP a good way to evaluate the impact of governmental decisions on society?

A) The GDP can help track changes in employment.
B) The GDP can help track the stability of prices.
C) The GDP can help measure the total production of goods and services around the world.
D) The GDP is a marketplace in which stocks are bought and sold.

1 answer

A) The GDP can help track changes in employment.

Tracking GDP is a good way to evaluate governmental decisions because it provides insights into the overall economic performance, which is closely linked to employment levels. When the economy grows, businesses tend to hire more workers, leading to lower unemployment rates. Thus, changes in GDP can indicate how effective governmental policies are in fostering job creation and economic health.