The total value of a country’s goods and services produced within its physical boundaries in a year
The GDP captures the overall size of a country’s economy by measuring the final value of all goods and services. Some items are excluded, such as services to benefit self that does not contribute to the economy; gifts; underground activities, etc.
Gross Domestic Product has 4 components and is represented by the formula:
GDP=C+I+G+NX
Where C = Consumption, I = Investment, G = Government Expenditure and NX = Net Export (Exports – Imports).
