Gross Domestic Product (GDP)

Gross Domestic Product is the total value of all goods and services produced in an economy. The textbook way of calculating GDP is as displayed below:

GDP = C + I + G + X - Z

C is Consumer expenditure
I is Investment
G is Government expenditure
X is Exports
Z is Imports

The value of a nation, or region's GDP is considered to be very important. It is the key measure of economic growth and is the most widely used measure of the size of an economy.

This entry has been viewed 296 times.