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GDP measures the market value of final goods and services produced within a country's borders during a specific period.
National output is the total quantity of goods and services produced by an economy during a given period, and the income generated from producing and selling that output is equal to its total net output. Gross domestic product (GDP) is the main measure of national output and represents the value of final goods and services produced within a country's borders. Adding net factor income from abroad to GDP gives gross national income (GNI), which measures the income earned by a country's residents. GDP and GNI are usually similar, but they can differ substantially in countries with significant foreign assets, debt, or cross-border income flows. GDP can be measured using the expenditure approach: GDP equals consumer spending, government spending, investment, and net exports, calculated as exports minus imports. Nominal GDP values production at current prices, while real GDP adjusts for inflation to measure changes in actual output. The GDP deflator, calculated as nominal GDP divided by real GDP times 100, indicates the overall price-level change associated with domestic production. Economic output can increase through technological progress, capital accumulation, and improvements in education and human capital, although business cycles may cause short-term declines such as recessions.
GDP measures the market value of final goods and services produced within a country's borders during a specific period.
Gross national income equals GDP plus net factor income from abroad and measures income earned by a country's residents.
The expenditure approach calculates GDP as consumer spending plus government spending, investment, and net exports.
Real GDP removes the effects of inflation, while the GDP deflator compares nominal GDP with real GDP to measure changes in the overall price level.
Long-run output growth is supported by technological innovation, physical and human capital accumulation, and demographic developments, while business cycles can create temporary recessions.
The total amount of final goods and services produced by an economy during a specified period.
The total market value of final goods and services produced within a country's borders during a given period.
GDP plus net factor income from abroad, measuring the total income earned by a country's residents.
GDP measured using the prices prevailing during the year in which production occurs.
GDP adjusted for inflation to measure changes in the quantity of output rather than changes in prices.
An index calculated as nominal GDP divided by real GDP and multiplied by 100, used to measure the overall price level of domestic production.
A method of calculating GDP by adding consumer spending, government spending, investment, and net exports.
The value of a country's exports minus the value of its imports.
An increase in an economy's productive capacity and real output over time.
A significant short-term decline in economic output and activity.
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