Question

Define GDP and its calculation

Answer 1

Gross domestic product is the total value of everything produced in the country. It doesn't matter if it's produced by are citizens or foreigners. If they are located within the country's boundaries, their production is included in GDP.

To avoid double-counting, GDP includes the final value of the product, but not the parts that go into it. For example, a Indian footwear manufacturer uses laces and other materials made in India. Only the value of the shoe gets counted; the shoelace does not.

GDP is calculated through :

$\frac{total annual income}{No of citizens\\}$

Answer 2

GDP means gross domestic product of a country. It is sum of total of the earnings done by each sectors of their final goods