ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The GDP is the total of all value added created in an economy. The value added means the value of goods and services that have been produced minus the value of the goods and services needed to produce them, the so called intermediate consumption.

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: -In a closed economy, gross domestic product is always equal to gross national product.

Detailed explanation-4: -Gross domestic product, GDP, equals gross domestic income, GDI, which includes compensation, profits, rental income, indirect taxes, and depreciation. We can use GDP, a measure of total output, to compute disposable personal income, a measure of income received by households and available for them to spend.