What is gross domestic product (GDP)

Business & Management
#1

The total value of goods produced and services provided in a country during one year. This signs the overall growth of the country in amount of goods that is produced in the country during a particular time period. The production and manufacturing plays a crucial role in determining the GDP of the country.

#2

GDP: The total market value of all final goods and services produced in an economy in a given year.

Their are different methods of measuring GDP, but all the most common is known as the Expenditure Method or Approach.

Expenditure Approach adds up all the money spent by country’s consumer, firms, and the government, and then factors in net exports.

GDP = C+I+G+Xn

C= Consumption Expenditures

I= Investment Expenditures

G= Government Expenditures

Xn= Net Exports Expenditures (Exports - Imports)