LeoGlossary: Gross Domestic Product (GDP)

The monetary value of all economic goods and services produced in a country during a certain period of time. This is measured in the native currency. Essentially it is a nation's total economic activity.

GDP is made up of:

• Private expenditures
• Government spending
• Net exports
• Investments

Ways to calculate GDP:

• Expenditure Approach:

GDP = C + G + I + NX

C = Consumption G = Government Spending I = Investments NX = Net Exports

• Income Approach:

GDP = Total National Income + Sales Taxes + Depreciation + Net Foreign Factor Income

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