Menu

In economics, gross domestic product (GDP) is how much a place produces in an amount of time. GDP can be calculated by adding up its output (total production) inside a country.

To find the GDP of a country, one adds up all consumer spending (C), all investment (I), all government spending minus taxes (G), and the value of exports minus imports (X – M). This is shown by the equation:

\displaystyle{ GDP = C + I + G + (X - M) }