This means fewer workers are needed. Because of this, unemployment often accompanies inflation. If this continues unchecked, it can lead to a recession , and eventually a depression . Economies can be measured in many different ways. No one measurement completely captures the success of the economy.
Different figures measure different aspects of the economy.
Imagine our taco stand has expanded to include businesses in Canada. When computing the GNP, every taco stand in our organization would be included. When computing the GDP, however, only those taco stands in the U.S. would be included. The balance of trade refers to the differences between imported and exported products. The taco shells we make in the U.S. and ship to Europe are exports.