What best describes the gross domestic product?

Answer 1

The gross domestic product (GDP) or gross domestic income (GDI) is one of the measures of national income and input for a given country's economy. GDP is defined as the total cost of all finished goods and services produced within the country in a stipulated period of time (usually a 365-day year). It is sometimes regarded as the sum of profits added at every level of production (the intermediate stages) of all final goods and services produced within a country in a stipulated time frame, and it is rarely given a monetary value.

Answer 2

The GDP or gross domestic product is calculated by the sum of Consumption, Investment, Government Spending, and Net Exports. GDP is defined as the sum of all goods and services that are produced within a nation's borders over a specific time interval, typically one calendar year.

Answer 3

In the expenditure approach to calculating gross domestic product there are four factors: consumption, investment, and net exports. Consumption is the expenses of households on goods and services such as food, entertainment, and other individual needs. These products can include consumer durables (long term goods like cars and furniture), non-durables (food and movies), and services (medical attention, legal services, or a real estate agent). Investment is the expenses by firms on goods and services which mainly include capital. This includes business fixed capital, residential investment, and inventory investment. Business fixed capital is the purchase of new capital like new machinery, and new buildings. Residential investment is the construction of new homes or residential buildings. Inventory investment is the accumulation of unsold goods. Government expenses are all purchases made by any level of government for goods and services, like teacher salaries, or equipment in a federal building. This does not include transfer payments like social security or tax benefits. Net exports consist of exports minus imports. Exports are goods produced domestically and sold to Another Country. Imports are goods produced internationally and bought domestically.

Answer 4

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