GDP stands for Gross Domestic Product. GDP is the final value of the goods and services produced within the geographic boundaries of a country during a specified period of time, normally a year. GDP growth rate is an important indicator of the economic performance of a country.
It can be measured by three methods, namely,
-
- Output Method
- Expenditure Method
- Income Method
Output Method : GDP (as per output method) = Real GDP (GDP at constant prices) – Taxes + Subsidies.
Expenditure Method : GDP (as per expenditure method) = Consumption expenditure + Investment expenditure + Government spending + (Exports-Imports)
Income Method : GDP (as per income method) = GDP at factor cost + Taxes – Subsidies