What does GDP mean to a layman?

Friday, 6 September 2013 03:47 -     - {{hitsCtrl.values.hits}}

The economic prosperity of a nation is measured by the percentage growth in GDP. A nation is made up of people. This means, the economic prosperity at the national level must be ‘felt’ by its population.  Here are questions from a layman to an economist – when for example it is said a country’s GDP is growing by 7%:
  • Do I get 7% more (real) buying power? 
  • Do 7% more people get jobs?
  •  Does the country produce/consumer 7% more goods and services?
  • Or am I borrowing 7%
more – against my future income? Time for a new way of economic-accountability?