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asked 10 months ago
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GDP is a measure of all the goods and services produced domestically. Therefore, to calculate the GDP, one only needs to add together the various components of the economy that are a measure of all the goods and services produced.
The basic formula for calculating the GDP (Gross Domestic Product) is:Y = C + I + E + G
where:
Y = GDP
C = Consumer Spending
I = Investment made by industry
E = Excess of Exports over Imports
G = Government Spending
The basic formula for calculating the GDP (Gross Domestic Product) is:Y = C + I + E + G
where:
Y = GDP
C = Consumer Spending
I = Investment made by industry
E = Excess of Exports over Imports
G = Government Spending
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