GDP Full Form / Full Form of GDP
I’m sure you definitely heard of GDP in Some news and TV. Everyone talking about it news, sometimes it goes down or sometimes goes up. But ever wondered what is the GDP and what is the Full Form of GDP.
So The Full Form of GDP is Gross Domestic Product.
GDP is the total market value of all the Goods and Products services produced in a country in a specific time period. As a Broad Measure its shows the overall production of a country and comprehensive measure of the strength of the economy of a particular country.
GDP is also a key guide to the policymakers of a country, investors and businesses to make the right decisions.
How Does GDP be calculated?
There is always a measure of calculation in every data or surveys. So what are some key measures to calculate a country GDP with 100% accuracy?
Before going to the process of calculation. we need to understand The GDP measures so that we can understand the calculation of GDP in a more convenient way.
There are four types of GDP measurements :
1. Nominal GDP – Nominal GDP is the raw data of GDP based on the calculations.
2. Real GDP – Real GDP is the data that allows to compare the economic growth or GDP from one year to another and compare them side by side. Real GDP also takes the impact of inflation.
you can read more about Inflation here
3. GDP growth – GDP growth rate is the increase in GDP from quarter to quarter in a year.
4. GDP per capita – This measure allows you to compare the GDP between different countries and It simply means the GDP per person in the populace.
Calculation of GDP
There are mainly three primary methods. First is the expenditure approach (also known as spending approach), second is, The Output or The production and the Third and last is the income approach.
You can read more about GDP calculation and methods on Investopedia