Question

Write the steps to calculate GDP of a country

Answer 1

To calculate GDP, start by adding the total amount that consumers in the country spent during the year to the amount of investments businesses made to help maintain their business. Then, take the amount of money spent on imports and subtract it from the money earned through exports.

Answer 2

One way of arriving at the GDP of a country is to calculate the monies spent by the different groups that participate in the economy. For instance, consumers spend money to buy various goods and services, and businesses spend money as they invest in their business activities, by buying machinery, for instance. Governments also spend money. All these activities contribute to the GDP of a country.

Also, some of the goods and services that an economy produces are exported overseas. And some of the products and services that are consumed within the country are imports from overseas. The GDP calculation, therefore, also accounts for spending on exports and imports. Thus, a country’s GDP is a measure of consumer spending (C) plus business investment (I) and government spending (G) as well as its net exports, which is exports minus imports (X-M).



Read more: How to Calculate the GDP of a Country | Investopedia https://www.investopedia.com/articles/investing/051415/how-calculate-gdp-country.asp#ixzz5FFko0bcA 
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