描述
The GDP (Gross Domestic Product) can be calculated using either the expenditure approach or the resource cost-income approach.
Features:
- Instant calculation
- Results can be copied to other apps
- Formula included as reference
- Supports up to 16 decimal places
- Supports various units for each input
Explanation:
Gross Domestic Product is a monetary measure of the market value of all the final goods and services produced in a period, often annually or quarterly. Nominal GDP estimates are commonly used to determine the economic performance of a whole country or region, and to make international comparisons.
Economics GDP Equation Formula:
GDP = personal consumption + gross investment + government consumption + net exports of goods and services
Formula:
Y = C + I + G + (X − M)
GDP (Y) is the sum of consumption (C), investment (I), government spending (G) and net exports (X – M).
Here is a description of each GDP component:
C (Consumption): Typically the largest GDP component, consisting of private expenditures in the economy (household final consumption expenditure). These personal expenditures fall under durable goods, non-durable goods, and services. Examples include food, rent, jewelry, gasoline, and medical expenses, but not the purchase of new housing.
I (Investment): Includes business investments in equipment, construction of new buildings, and purchase of machinery and equipment for factories. It does not include exchanges of existing assets or purchases of financial products, which are considered saving.
G (Government Spending): The sum of government expenditures on final goods and services. It includes salaries of public servants, military purchases, and investment expenditures by the government, but excludes transfer payments like social security or unemployment benefits.
X (Exports): Represents gross exports, capturing the amount a country produces for other nations' consumption.
M (Imports): Represents gross imports, which are subtracted since they are included in C, I, or G, and must be deducted to avoid counting foreign supply as domestic.
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