I always wondered what terms like GDP, GDI etc ment but never had the courage read and understand it. Now i do it for my own learning.
GDP stands for Gross Domestic Product.
It is a measure of national income and the output of a nations economy. It is the market value of all the goods that a nation produces in a perticular amount of time. Unsually a calender year.
GDP is calculated by the formula
GDP =consumption + gross investment + government spending + (exports − imports)
Ultimately it boils down to the saying this… GDP how much a country can produce in a period of time.
