GDP or Gross Domestic Product denotes the market value of all the goods and services produced within a country or a specific region for a given period of time. The goods include the manufactured products, agricultural products and all types of natural resources. The region can be a part of a country or a combination of multiple countries.
GDP is considered to be the most important indicator of a country’s economic size and standard of living.
GDP of a country can be measured in three ways and they are
All these measures should provide almost equivalent results but most widely used measurement approaches are expenditure approach and income approach. Both of these approaches will be explained now.