Full Form Of GDP - What is Gross Domestic Product

Full Form Of GDP – What is Gross Domestic Product?

Full Form Of GDP:  GDP means Gross Domestic Product. At any given time, such as if the product and service that is ready in the financial system of the entire country in one year are mixed and its price is imposed according to the market, then it is the GDP of that country’s financial system i.e. Will be called Domestic Product. Meaning that the product that has been done in the country in a year will be called GDP.

Full Form Of GDP

GDP is mainly based on three things.

  1. Agriculture
  2. Industry
  3. Service

And in all three fields GDP is folded based on the average increase or decrease in production. Explain that GDP is also called an indicator of the economy. Because it shows the speed of business in Market.

Only household goods are counted in GDP. Meaning that only things made in our country will be added to GDP. For example, suppose something is made in India and sold in India or any other country, then it will be added to GDP. And if something is made in another country and sold in India, it will not be counted in GDP.

Full Form Of GDP

(The easiest way to know how the economy is in a country’s economy is GDP.)

How is the GDP of a country measured?

Suppose in a country only 100 chairs are made in 1 year and the cost of 1 chair is 200 rupees. (100×200 = 20000 Rupees) then the GDP of that country will be 20000 Rupees.

How to calculate GDP?

Formula for measuring GDP {GDP = C + I + G + (X – M)}

= CONSUMER EXPENDITURE

= INDUSTRIES INVESTMENT

= GOVERNMENT EXPENDITURE

= EXPORT – IMPORT

Assuming CONSUMER EXPENDITURE is $100, INDUSTRIES INVESTMENT is also $100 and GOVERNMENT EXPENDITURE is also $100, and EXPORT and IMPORT are also 100-100 Dollar. And then the GDP will be $300. As the export value of GDP is equalized minus exports.

EXP: – GDP = $ 100 + $ 100 + $ 100 + ($ 100 – $ 100) = $ 300

Why is GDP calculated?

GDP speaks of the economic health of any country. GDP is a number that describes how the country’s economic situation is. GDP is calculated for a fixed period of time for 1 year. After calculating the GDP, the number that comes, then the GDP of different countries is compared to that number and it is known how the economic situation of our country is compared to other countries.

How does GDP grow?

The GDP of a country increases when the residents of that country buy things made in the same country. Like if you live in India and buy things made in India, then India’s GDP will increase. But if you stay in India and buy Chinese things, then China’s GDP will increase.

GDP was first used by SimonKujlett, an economist in America, to measure America’s economy from 1935 to 1944. And since then it has been used at the international level during the IMF ie International Monetary Fund. And today almost every country in the world uses GDP to measure its country’s economy.

Full Form Of GDP

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