Answer to Question #124568 in Economics for Joseph Danso

Question

What accounts for the fact that a close association exists between industrial growth and the growth of GDP?

Answer 1

GDP we can calculate like demand of population. Human can not consume endless for one unit of time. In the developed country usually, 

the increasing of GDP it is a result of population growing. New people increase the demand, as a result the production of goods increase. In the developing contries, when the population welfare grows, people consume more goods (food, clouthers and etc.). As a result the production is increased.