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... national output is usually expressed in terms of Gross Domestic Product (GDP). ... GDP will include the value of all goods produced, such as houses, CD’s and the value of services such as a train journey. ...
‘The goal of GDP is to summarise in a single number the value of economic activity in a given period of time.’ The aim of the GDP measure is to also assess the standard of living within a country based on its economic transactions. There are three different methods of calculating GDP: 1) The Product method; 2) The Income method and; 3) The Expenditure Method.
If all are calculated correctly they will give the same value, since:
National Product = National Income = National Expenditure
GDP is said to be the most comprehensive measure of a nation’s total output of goods and services. ... ’
The GDP statistic is of great importance, as it gives an indication of the development of the economy, and the rate of economic growth within it. The monitoring of a country’s GDP level over a period of time can enable inter-year comparisons to be made. ... In practise, GDP data is not only used as a measure of how much is being produced, but also as a measure of the welfare/living standards of the country’s citizens.
Approximate Word count = 1048
Approximate Pages = 4.2
(250 words per page double spaced)
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