Gross domestic product Assignment Example | Topics and Well Written Essays - 1500 words

Gross domestic product - Assignment Example In this case, the GDP acts as a clue in matters pertinent to financial wealth of the country through measuring standard of living in a given country. Consequently, every country develops interest in knowing about the GDP correlations to ensure a boost in the wellbeing. Some of these GDP correlations realized in every country are happy index, crime rate, corruption, income and if the country is developed or developing. it is intrinsic to gain the knowledge about how these factors affect the GDP in order to tailor projects that can restore a nation. Many studies have been carried out both having the aim of testing the hypothesis presented in the paper. Through carrying out a study on the GDP of different countries, the researchers give their prediction on whether the factors are likely to increase on reduce the GDP. Andrew E Clark and Claudia Senik presents study which shows that happiness index and income have impact on the GDP. The variables in play were income, happiness index and GDP. They confirm the availability of correlation between the factors and the former. In order to test their hypothesis, the authors verified the significant relationship between happiness index and income of a country. Evidently, they found that increase in happiness index insinuates that income is also likely to increase on the other hand. The authors assert that happiness of psychological importance to the citizens, especially in their endeavors of increasing their income (Clark and Claudia, 20). The study also showed that income has a significant relationship with GDP as can be shown by the correlation presented. The study concluded that the income affects the well-being in an indomitable way regardless of other factors. Clarifying the results, the study indicates that income improves a country’s ability to adapt. In a study carried out by the J.