ALL YOU NEED TO KNOW ABOUT GDP.

 What is GDP?

GDP is Gross Domestic Product. This means the amount of production whithin a country is called GDP.

In, simple terms consider a Country A which produces good quality shoes at the rate of ₹400 and produces hundred of them then the GDP of that country A will be ₹40,000(400*100).

What all does GDP includes?

GDP includes all the produced goods and service provided whithin a country.it also includes consumption expenditure (of households, NPISHs, and general government), gross fixed capital formation, changes in inventories, and exports of goods and services, less the value of imports of goods and services.

They are also the major elements of GDP.

What are its components?

There are 4 major components of GDP:-

 1. Consumption  ( The amount of goods and services consumed.)

 2. Investment (the amount being invested in different sectors.)

 3. Government spendings ( expenditure by government.)

 4. Imports and Exports ( the goods being imported and exported.)