Gross Domestic Product

• Gross domestic Product (GDP):

GDP is the market value of all the good and services produced in a country with in a given period.

GDP= C+ I+ G+X

where C=consumption

I= investment

G= Government purchases

X= Export-Import

Types of GDP :

Nominal GDP : It is the GDP which uses current market prices.

Real GDP : It is the GDP which uses market Price of base year.