Essay: Gross domestic product (GDP)

To start with, GDP refers to the total market value of finished goods and services produced within the borders of a country by both the foreign investors and the citizens of a particular country for a given period of time normally a year, which is equal to total consumer, investment, government spending plus the value of net exports (quickmba.com).

This method works under the assumption that producers of the goods and services get their incomes from those produces while the consumers’ expenditures (both the government and the private sectors) are entirely used in purchasing those goods and services. Additionally there are various types of GDP of a country depending on the period used for calculation.

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