what is GDP ? How to calculate GDP?Explain with an example for each sector
Answers
Gross Domestic Product (GDP)
The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.
GDP = C + G + I + NX
"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)
Hope it helps:)
Answer:
G.D.P. is the sum of the money value of final goods and services produced in each sector during a particular year within domestic territory of a country. Only final goods and services are counted in G.D.P. because: (i) The value of final goods already includes the value of all intermediate goods.
Gross domestic product is a financial strength of the market value of all the concluding goods and services delivered in a period of time, often periodically. The most popular approach to estimating GDP is the investment method: GDP = consumption + investment (government spending) + exports-imports.