What Is GDP...gross Domestic Product..in Details Mean?

Gross Domestic Product determines the output of a specific economy. It can be defined as the market value of all of the goods and services in an economy over a certain period of time. It is known as Gross because the depreciation of capital stock is not subtracted from GDP and it includes depreciation as well. The goods which are valued at the market prices are the final goods and they do not include goods in work in process. There are three types of GD which includes current GDP, Nominal GDP and real GDP.

GDP is calculated as:
GDP = C + I + G + (X-M)
where,
C = Consumption
I = Gross investment
G = Government spending
(X-M) = exports - imports