Question

List and explain

Answer 1

GDP that is the production of final goods and services within the boundary of a country in a financial year

It is generally measured quarterly or yearly basis

The main three method that is accepted worldwide for calculating gross domestic Product are-

1.Expenditure method -in this method it is the sum of consumption, government spending, net investment and net export

Where net export is the difference of export and import

Here GDP also known as aggregate demand factor

2.Income method- in this, income from different people that are in different jobs or self employment like entrepreneurship are taken like wages,, salaries etc

3.Third method is value of output method in which the whole four main sector that are primary, secondary, tertiary and quaternary sectors are taken and the value added from them are considered for the calculation of GDP