How is it calculated and what is the importance of the growth rate of
Answer:
GDP measures the total value of goods and services produced in a country during a year within the country's borders by citizen's and non-citizen's, whereas GNP measures the total value of goods and services produced in a country by the country's citizens both domestic and abroad.
GDP can be measured by the income method and the expenditure method:
To calculate the GDP by expenditure method we include the total consumption expenditure, Total investment expenditure, and Govt. expenditure.
And to calculate the GDP by the Income method we add up the wages, rent, interest, and the profit earned by the entrepreneur.
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