ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -GDP measures the monetary value of final goods and services-that is, those that are bought by the final user-produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.

Detailed explanation-2: -Gross domestic product (GDP) is the standard measure of the value added created through the production of goods and services in a country during a certain period. As such, it also measures the income earned from that production, or the total amount spent on final goods and services (less imports).

Detailed explanation-3: -The Gross Domestic Product (GDP) is the total market value of all finished goods and services made within a country for a specific period of time. GDP is used to estimate the size of the economy and the growth rate. The GDP can be calculated in three different ways, such as Expenditures, Production and Incomes.

Detailed explanation-4: -If we talk about a simple approach, it is equal to the total of private consumption, gross investment, and government spending plus the value of exports, minus imports i.e. the formula to calculate GDP = private consumption + gross investment + government spending + (exports – imports).

Detailed explanation-5: -Economic output is the quantity of a product that a company, sector, or economy can produce over a limited period of time. [i] In this report, economic output is considered to be the total value of all goods and services produced in an economy.