Question

How do we count various goods and services for calculating Gross Domestic Product (G.D.P.) of a country ? Explain with example.

Answer 1

GDP of a country is calculated as under.

Explanation:

GDP is basically the total value of goods, products and services that are produced in a financial year in a country.

All three primary sectors of the economy are considered in this calculation. GDP is calculated by summing up the total value of finished goods and products manufactured in every sector of the economy rather than of intermediate products.