Question

How is GDP ? How do we count the various good and service for calculating GDP ? And example

Answer 1

GDP stands for Gross Domestic Product. It is the final value of all the goods and services produced within a country during specific period of time.

The following guidelines aid in calculating the total production in a given sector :-

- The value of the goods are calculated rather than the number of individual goods.
- The value calculated is of the final goods and services which automatically includes the values of the intermediate goods and services.
- The total production is then acquired by adding the total value of the final value of the goods and services in a given sector. This will give us the GDP in this sector.

Hope it helps you....