ranjan

Economists use many different methods to measure how fast the economy is growing. The most common way to measure is Real GDP (Gross Domestic Product). GDP is the value of everything - Goods and Services produced in the economy. The idea of GDP came up with a basic concept by William Petty to attack landlords against unfair taxation during warfare between Dutch and English between 1654 and 1676. Charles Davenant developed the method further in 1695. The modern concept of GDP was first developed by Simon Kuznets for  a US congress report in 1934. GDP measures output of goods and services produced by labour and property located  within U.S. during a given time period. However, GDP is a measure of raw economic activity, not a complete picture of economic progress. GDP is (like a speedometer of a car) which tells you whether economy is going faster or slower, but it does not tell  whether it is overheating or running out of fuel as also whether or not you are going in the right direction