Nama : Sukono

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TUGAS 2

BAHASA INGGRIS NIAGA / ADBI4201

THEME :

The number of GDP can always tell whether a country is prosperous or not.

Do you agree or disagree to the statement?

GDP was formed for the first time in response to the great depression that had hit the United
States economy. After conducting various studies, an economic research institute in the United States
finally found a method to measure the country's economy. At that time the proposed method was the
Gross National Product (GNP) or in English it was called the Gross National Product (GNP). However,
after the Bretton Woods conference in 1944, it was decided that the method proposed as an
international measure would be GDP.

Uniquely, even though the US proposed GDP as a measuring tool for international economic growth, the
US itself instead used GNI before it was finally replaced by GDP in 1991.

GDP as a measure of the economy, GDP has several benefitsinclude the following:

 Measuring the rate of national economic growth, With the existence of GDP, a country can find
out the extent to which its domestic economy has grown. Countries can also analyze from
existing data which factors can be maximized and which ones still need to be improved.
 Comparing the economic progress between countries, Each country has its own advantages and
disadvantages. The problem is, without a measuring instrument, the advantages and
disadvantages are something that is difficult to prove. Through the figures generated by the GDP
of the countries in the world, it can determine who is superior and who is not. The output is
what we now know as the G7 and G20 which consist of the countries with the strongest
economies in the world.
 Knowing the economic structure of a country.
 As a basis for formulating government policies, Without reliable data, a country's policies will be
difficult to determine whether they will succeed or not. Yes, of course, nothing is certain.
However, with the data, at least the government can get help in formulating policies.

GDP is often interpreted as an indicator of a country's welfare. A high GDP figure is defined as a
high production rate. The high rate of production is related to the high purchasing power of the people.
This is why when the GDP figure rises, there is an assumption that the country is also getting more
prosperous. Finally the question arises, is it true? Is it true that the increase in GDP is also followed by an
increase in the welfare of a country?

I am disagree with the statement "The number of GDP can always tell whether a country is
prosperous or not." because GDP measurement involves investment, spending, to exports and imports.
The problem is, everything that is included in the calculation is only what is recorded. Even though there
are other activities that may not be recorded. GDP does not consider whether all the profits generated
by the company fled to the country where it is located or returned to the country of origin.