Gross Domestic Product Is The Measure Of A Nation 's Total Economic Activity

Public expenditure - Spending made by the government of a country on collective needs and wants such as pension, provision, infrastructure, etc.

Gross Domestic Product, also known as GDP, is defined as the dollar value of all final goods and service produced within the border of a country during a specific period of time, typically in one year. GDP measures the value for the whole country, and it also changes quickly. We can take a look at the trends of US GDP in the website of the U.S. Bureau of Economic Analysis.

Gross Domestic Product, or GDP, is the total market value of final goods and services produced within an economy in a given year. It is the most common measure of an economy’s total output.

One, Measures total number of all goods and services in an economy in one year. Also, GDP measures consumer spending. For example food, clothing, and housing. Lastly, measures business spending like for buildings, equipment, and supplies. That is why GDP is important for business owners.

Gross Domestic Product (or known as GDP), is defined as, “aggregate output as the dollar value of all final goods and services produced within the borders of a country during a specific period of time, typically a year” (McConnell, Brue, & Flynn, 2012). This measures the value of the output in monetary terms, and you can check current trends of the GDP by taking a look at the Bureau of Economic Analysis website. Today, we are taking a look at the “Release Highlights” link to check the most current trends within the GDP.

GDP includes goods and services that do not include a countries economic wealth and, on the other hand, excludes things that do. According to paecon.net, GDP excludes three main categories.

First we need to define what is GDP and how is it measured. According to Chan (2013) GDP is a measure of the output of all final goods and services produced in the United States of America in a given year. Now, GDP can be measured in two ways: by adding

India gross domestic product (GDP) means the total value of all the services and goods that are manufactured within the territory of the nation during the specified period of time.

Farani et al, (2012) highlights that a‘GDP is a common statistic for representing the income level of a particular country within a certain time range. Study about finance- growth nexus always use GDP as the principal variable reflecting economic growth. We use gross fixed capital formation (GFCF) as a representation of investment in order to measure net new investment during an accounting period. It is to be noted that the financing variable applied in this model is a portion of total financing in the economy provided by Islamic banks’.

Both methods of calculating the GDP are expected to produce the same figure ("Investopedia," 2012). The income approach to calculating the GDP, which is sometimes noted as GDP(I), includes the summation of the total compensation to employees (which would include benefits, bonuses, and the like), the gross profits for companies that are incorporated and companies that are not incorporated, and taxes minus any subsidies ("Investopedia,"

Public expenditure is the main instrument used by governments especially in developing countries to promote economic growth which is an essential component for sustainable development (MOFED 2010). However, composition of government expenditure has been attracting the attention of economists due to its effects on the level of growth (Sharma B. 2012).

Gross national product of a specific country is the sum of the goods and services produced by citizens of a country domestically and the output from external sources which are owned/part of the specific country. The symbol used to represent gross national product is GNP and the equation for the GNP can be simply written as:

Gross Domestic Product is the total amount of the government’s activity is regards to the economic spending. This amount is a cumulative of four different parts. The four factors involved in Gross Domestic Product are consumption, investment, government spending, and the amount of exports minus the imports. All of these parts make up what Simon Kruznets named Gross Domestic Product in 1937. Kruznets was born in 1901 on April 30 in Pinsk, Russia. Before his death, on July 8th, 1985 in Cambridge, MA, he received his degree from Harvard Law. From there, Kruzets became an economist for the National Bureau of Economic Research. In 1971, Simon Kruznest received a Nobel Prize for his measurement in national income accounting. His innovative involvement in working to create a simplified solution to account for all the government activity was also a major reason for him being awarded with a Nobel Prize. He was not only concerned with the economic growth of the United States, but also that of poor countries. Simon Kruznets found out ways to improve those countries economy based on his findings, regarding the growth and difference of disparity between rich and poor people. During all of this, Kruznets taught economics at Harvard, Johns Hopkins and the University of Pennsylvania. Although Simon Kruznets was a major player in the

The expenditure approach identifies four possible destinations for the total production of an economy. This output can be consumed by households, businesses, the governmentor the foreign sector. That is why the GDP can be calculating by adding the total amount of the purchases made within an economy in a period of time.

Gross Domestic Product (GDP) is a measure of value of output; it also reflects the wealth of countries. It can be measured by the function Q = f (K;L): if we want increase the quantity produced (and the national income), we should increase the labour (workforce) – represented by L – and the capital (equipment such as factory or machinery) – represented by K. The value and volume of output will grow up thanks to this to factors.