ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -GDP stands for “Gross Domestic Product” and represents the total monetary value of all final goods and services produced (and sold on the market) within a country during a period of time (typically 1 year). GDP is the most commonly used measure of economic activity.

Detailed explanation-2: -Measuring GDP. 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-3: -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-4: -The output approach to measuring GDP, sometimes referred to as GDP(O), is the measure of output or production in the economy. It covers the whole economy and uses the same data that makes up the index of production, output in the construction industry, retail sales index and the index of services (IoS).

Detailed explanation-5: -GDP measures the production of resident entities regardless of nationality within the economy, while GNI includes the income earned outside the economy by national entities and excludes the income earned by foreign nationals in the domestic economy.