ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Gross domestic product tracks the health of a country’s economy. It represents the value of all goods and services produced over a specific time period within a country’s borders. Economists can use GDP to determine whether an economy is growing or experiencing a recession.

Detailed explanation-2: -GDP is measured by taking the quantities of all goods and services produced, multiplying them by their prices, and summing the total. GDP can be measured either by the sum of what is purchased in the economy or by what is produced. Demand can be divided into consumption, investment, government, exports, and imports.

Detailed explanation-3: -GDP as a Measure of Economic Well-Being GDP measures the total market value (gross) of all U.S. (domestic) goods and services produced (product) in a given year. When compared with prior periods, GDP tells us whether the economy is expanding by producing more goods and services or contracting due to less output.

Detailed explanation-4: -Real GDP (gross domestic product) is a measure of all the goods and services produced in a nation adjusted for inflation or deflation, expressed in dollars. Economists prefer real GDP over other calculations because it adjusts for price changes, presenting a more accurate picture of production growth.

Detailed explanation-5: -One way in which economists measure the performance of an economy is by looking at a widely used measure of total output called gross domestic product (GDP). GDP is defined as the market value of all goods and services produced by the economy in a given year.