What is GDP?
Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.
Expenditure Approach Formula
GDP = C + I + G + (X − M)
Where:
C = Personal Consumption Expenditures
I = Gross Private Domestic Investment
G = Government Consumption & Gross Investment
X = Exports
M = Imports
Components Explained
- C (Consumption): Household spending on goods and services.
- I (Investment): Business spending on capital goods and inventory changes.
- G (Government): Government spending on goods and services.
- NX (Net Exports): Exports minus Imports (X - M).
Important Notes
- This calculator uses the Expenditure Approach, the most commonly used method.
- Values are typically entered in billions of USD.
- GDP can also be calculated using the Income Approach or Production Approach.