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What is the Gross Domestic Product? (GDP)

Economy concept

Economics can be defined as that science that is concerned with the study of the production, distribution and consumption of wealth in human societies. The surface and increase the ability of specialists to explain some economic phenomena, especially with the association of economics with some other sciences, such as: accounting science, marketing science, and other commercial sciences. Total? In this article, a question will be answered: What is the Gross Domestic Product?
What is the Gross Domestic Product? (GDP)
What is the Gross Domestic Product? (GDP)

What is the Gross Domestic Product (GDP)

The answer to the question what is GDP is that it is one of the most important economic criteria by which the monetary value of goods and services is measured in a country for a specific period of time, and this period measured by GDP may be a quarter of a year or half a year, but it is mostly It is measured for a full year in order to be comparable between one country and another, and the GDP is not limited to calculating the monetary value of final goods and services in a country for a specific period only, but includes in the concept of GDP some other services that are not intended for sale in the markets, such as education services or health care or any other government services.

In the context of answering the question what is the GDP, it must be noted that some activities that take place within the territory of the state are not included in the GDP, the most prominent examples of which are: unpaid activities such as volunteer work, and some sales operations taking place on the black market And some self-work activities, such as a mechanical technician maintaining his car himself, and all these operations are excluded from the value of the GDP due to the difficulty of determining its material value accurately, and the GDP is one of the most important references that reflect the strength of local and international economies, and GDP is affected by circumstances And economic problems such as the problem of inflation.

Standard types of Gross Domestic Product (GDP)

After answering the question of what is GDP, it must be noted that this economic concept has many standard ramifications, so that each standard type of GDP is responsible for describing a set of economic information, and the following are the standard types of GDP:
  • Nominal GDP: The type concerned with measuring general nominal economic data.
  • Real GDP: This type takes some economic considerations within the value of the natural GDP to make comparisons of the value of GDP between one country and another or between one year and another in the same country.
  • GDP growth rate: This concept measures the amount of increase in the value of GDP for each quarter.
  • GDP per capita: This type of GDP is concerned with measuring the level of GDP of individuals in human societies in order to compare the GDP between one country and another at the individual level.
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