What is GDP?
Subject:
Economics [1]
What Is Gross Domestic Product? Gross domestic product (GDP) is the total market value of all final goods and services produced in a country in one year. To calculate GDP, complete the following steps: 1. Find the market value for each good produced: Multiply the price of each good by the quantity of the good produced. 2. Sum the market values: Add the dollar amounts found in step 1. Why Count Only Final Goods? GDP is the total market value of all final goods and services produced in a country in one year. A final good is a good sold to its final user. For example, when you buy a hamburger at a fast-food restaurant, the hamburger is a final good. You are the final user. No one uses (eats) the hamburger besides you. An intermediate good, in contrast, has not reached its final user.