Question

What is the objective or the motivation of doing an empirical exercise on the GDP of four countries?

(The exercise asks to compare real GDP per capita, correlation between the growth rates of eqch country..)

Answer 1

GDP is the measure of the economic welfare and the standard of living of any country. Comparing GDP of one country with other will shows the countries growth and how it is economically developed when compared to other countries . But every country have their currency so the GDP values varies. So they all convert it into a common currency mostly into GDP and shows than comparision of GDP between countries takes place.

Correlation of growth rate betwen countries shows the gaps between countries and how their economically stable or unstable with other country and the growth between different countries everything can be seen.