Gross Domestic Product

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GDP

Beginner Level Global Macroeconomics 2 views

Definition

The total monetary value of all finished goods and services produced within a country's borders in a specific time period.

Detailed Explanation

GDP is the primary indicator used to gauge the health of a country's economy. It can be calculated using three approaches: production (output), income, and expenditure methods. GDP includes consumption, government spending, investments, and net exports (exports minus imports).

Example

If a country produces ₹100 trillion worth of goods and services in a year, its annual GDP is ₹100 trillion.

Also Known As

Gross Value Added National Output

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