Compare and Contrast Measures of Economic Growth and Welfare in the UK

Essay

INTRODUCTION
Macroeconomics is the branch of economic which deals with the performance, decision-
making, structure and the behaviour of the economy as a whole. The main concern of
macroeconomics is the national output, inflation & unemployment within in the economy. There
are certain approaches which is being used by the country so that they can ensures the flow of
goods and services in an appropriate manner(Wilson and Wilson, 2021). It also studies the gross
domestic products, consumption, savings, investment, international trade and the finance within
the economy. This respective essay will cover the compare and contrast to measure the economic
growth and economic welfare of the UK. With this, the company can analyse the better working
and ensures the results for the development of the economy. This respective essay will cover
economic growth and it welfare of United Kingdom.
MAIN BODY
Compare and contrast the measures of macro economy of a country.
Macroeconomics analysis the phenomena which includes the price level, inflation, rate of
growth, gross domestic products and the variation in the overall unemployment. Economic
growth is considered among the most crucial indicators which are released and it is the main
concern that it indicates the overall growth of economic output within the economy. This essay
will cover the topic of economic growth and economic welfare within the UK economy.
Economic growth is defined as the increase in the production of products and services in
comparison from a particular period of time to another. It is also defined as the rise in the value
of commodities and services that creates profitability to the particular goods and services. As a
results, stock prices also increases by which companies can invest and hire more employees
within the organisation. When more job are created then it tends to rise the income level by
which it assured the consumer to have more money and purchasing which driven the higher
growth(Shafique and Ali, 2018). This is the reason, all the nations want positive economic
growth. For analysing the economic growth of the nation, Gross domestic product is the best way
to measure the economic growth at it takes into account the country's entire output and it does
not matter whether they are sold domestically or overseas. The World Bank uses the gross
national income despite of GDP to measure the overall economic growth. It includes the income
which is being generated by the citizen who are working in international market. It is also

important source of income for the certain market. GDP helps to shape the national economy of
UK and it has started to level in the recent years by taking a huge body blow in the collapse takes
place in financial year 2008. they somehow manage to rise from the dark state of desperation
which was it between 2009 and 2010 and from -3.97 to 1.8% as the country is completely facing
collapse of the entire banking industry. The Big Bang policy is the one which involves the mass
deregulation of the certain financial market which leads to huge change in the financial decisions
in London work.
Illustration 1: United Kingdom GDP Growth Rate,2021
Moreover, the British economy advanced 6.5% per year and following an upward
revised of 7% growth in the past year and it is slightly high than forecasts of 6.4%. government
spending recorded the biggest rise of 11.6% which is followed by household expenditure of
8.9%.
Economic welfare, It is the economic well-being expressed in context to the sum total of
the consumer and the producer surplus, it is basically known as the community surplus. It exist
whenever the given prices, a consumer would like to pay in context to their expected private
benefits which is greater than they actually pay (Hausermann, 2021). It is defined as the level of
prosperity and the quality of living standards within the economy. It is being measured with the
help of various factors that are GDP and other indicator that shows the welfare of the
population(level of populations and literacy rate). It includes the development of people heath,