Answer to Question #59871 in Macroeconomics for Paola

Question

What is gdp

Answer 1

Gross Domestic Product is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period (quarterly or yearly). Gross Domestic Product can be calculated using the following formula:
GDP=C+G+I+NX,
here, C is equal to all private consumption or consumer spending in a nation’s economy, G is the sum of government spending, I is the sum of all the country’s investment, including businesses capital expenditures, NX is the nation’s total net exports (can be calculated as total exports minus total imports).