What is the full form of GDP ? I know that this question had been came in your mind by listening the term GDP in the news or you might be a student of economics and try to understand GDP. Today in this article we Gonna know the full form of GDP.
Full form of GDP is Gross Domestic Product. It is total market value of all the goods and services combined which are produced in a country in a specific time frame such as 1 month or 1 year or 5 year etc. GDP is the measures of all monetary value of final goods and services, final goods are those which are bought by the end consumer in a specific duration of the time
GDP is basically used in the measurement of the size of an economy and overall growth or decline in the economy of a country. GDP specifies the living standard of the people of a country , i.e. as the GDP increases of a country the living standard of the people of that country also increases.
A country which have good GDP is considered as a good country for living purpose as the living standards of people in that country is high.
The simplest way to calculate the GDP is that it is equal to the total of private consumption, gross investment and government spending plus the value of exports, minus imports i.e. the formula to calculate
GDP = private consumption + gross investment + government spending + (exports – imports).
I hope you have been understood GDP and learned the Full form of GDP. By sharing this post to your friends you can let your friends know about the full form of GDP.
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