What Is GDP?

A GDP is the Gross Domestic Product of an area. The GDP of a country is the market value of products that are manufactured within the country. In the United States it was earlier known as GNP (Gross National Product). The formula calculated for GDP is GDP = consumption + investment + government spending + (exports – imports).

Consumption and investment in the above equation refers to the expenses of the final product. The exports – imports is also known as the cumulative exports. This part of the equation is adjusted by subtracting the expenditure part of imports and adding the domestic production.  

However, due to the complications this consumption is divided into two parts known as the private consumption and public sector.

GDP is gross domestic product, a measure of national income and output for a given country's economy.

Gross Domestic Product is the value of goods and services produced in the country during a year minus the value of inputs.

GDP= Total value of all the goods and services produced-Value of inputs.