Question

What is the fomulas of GDPmp?

Answer 1

Hello....!!

Gross domestic product at market prices is the sum of the gross values added of all resident producers at market prices, plus taxes less subsidies on imports.

There are two principal ways of calculating GDP:

Expenditures Approach: GDP = C + I + G + (X-M)

and

 Income Approach: NI = W + R + i + PR

The first focuses on total expenditures on goods and services produced in the period. 

While, the second focuses on the payments to the factors of production involved in those production activities within the period.


Hope this helps.....!!

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