Gross domestic product example

Gross Domestic Product, more commonly known as GDP, remains the world’s most closely-watched economic indicator. Its growth – or lack of it – is used to measure economic progress.

But there is much more to GDP that just one number. In this post Craig McLaren is our guide to how GDP is calculated and how it’s best understood.

Three Measures of GDP

In very simple terms, GDP measures how much is produced, how much is spent and how much is earned in the economy over a given period and, also, how this changes over time.

But the way we measure it is complex.

How to calculate gdp class 10

There are three district ways of measuring GDP – output (the goods and services produced in the economy), expenditure (money invested by businesses and spending by households and government) and income (business profits, household income and government tax take).

These should theoretically add up to exactly the same number. However, we use a huge number of data sources to measure the economy and the data we

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