What Does GDP stand for?

GDP Stands for Gross Domestic Product.

What IS GDP?

Gross Domestic Product commonly known as a short form GDP is the monetary value of all the goods and services which are produced in years and sold in the market. And also produced in a period of time. Often annually or quarterly. Called Gross Domestic Products.

GDP is all around us A cars, Clothes Doctors, and others who produce services like yo add the value of goods and services you get gross domestic products. A higher GDP means everyone doing great.

GDP is a good indication of how much an economy produces each year.
GDP-GDP Stands for Gross Domestic Product.

Why is GDP Important?

The main purpose of the Gross Domestic Product is to check the health, economy, and economic growth of any country that why we use the GDP method. This method is best and many countries use it. Here we just consider and add that product which is produced and make in a particular period of time.

Like we go to market for shopping and purchase something for our self Like I purchase a pent shirt in 10000 rupees that amount will be added in GDP.this is the simple example of GDP. if I purchase it in this year's, not previous years amount will be added to this year's GDP. Because precious year amount was added on those years.

For example:

In 2020 we create many Cars and motorcycles we are just creating the value of these products and we will add the value of the specific products which are created in 2020 and then sell them.

The Products of 2019 cost are not be added to the DGP of 2020 because it has been added at that time 2019. So we will not include and add the price of 2019 in 2020GDP.

What are the Methods to Calculate GDP?

There are three Methods to Calculate Gross Domestic Product

  • Production Approach
  •  Income Approach 
  •  Expenditure Approach