Question

How is GDP calculated?​

Answer 1

Answer:

The calculation of a country's GDP encompasses all private and public consumption, government outlays, investments, additions to private inventories, paid-in construction costs, and the foreign balance of trade. (Exports are added to the value and imports are subtracted).

Answer 2

GDP = as per expenditure method = C + I + G + (X-IM)

where ;-

• C: Consumption expenditure,

• I: Investment expenditure,

• G: Government spending and

• (X-IM): Exports minus imports, that is, net exports.