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What is GDP Explain with example |
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Answer» GDP or gross domestic product is the total production of a country throughout the year. It does include the international trade that is import and export and also domestic product. It is only the sum total of it.. Hope it will help you.. Gross Domestic Product (GDP) is the total sum of the value of the final goods and services of the Primary, Secondary and Tertiary sectors of the economy of a country produced during a year.Example:Wheat and Hour are intermediate goods used for making final products like bread and biscuits. Intermediate products should not be counted in the figure of GDP. Biscuits and breads are the final products prepared using flour and other ingredients like sugar, salt, oil etc.Only the final products are reaching the actual consumer. The value of the intermediate products is already counted in the final products and if this is again counted, it will lead to double counting, causing an error in the estimation of GDP. Domestic* Gross demostic product |
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