Ukitaka kijifunza zaidi kitaalam jinsi ya kucalculate Gdp unaweza kufuata hii link hapo chini
Gross Domestic Product
- Gross domestic product (GDP) is the total value of output produced in a given time period
- GDP includes the output of foreign owned businesses that are located in a nation following foreign direct investment. For example, the output produced at the Nissan car plant on Tyne and Wear contributes to the UK’s GDP
Three ways to measure GDP
There are
three ways of calculating GDP - all of which in theory should sum to the same amount:
National Output = National Expenditure (Aggregate Demand) = National Income
(i) The Expenditure Method - Aggregate Demand (AD)
The full equation for GDP using this approach is
GDP = C + I + G + (X-M) where
- C: Household spending on goods and services
- I: Capital Investment spending
- G: Government spending
- X: Exports of Goods and Services
- M: Imports of Goods and Services
The Income Method – adding together factor incomes
GDP is the sum of the incomes earned through the production of goods and services. This is:
- Income from people in jobs and in self-employment (e.g. wages and salaries)
- +
- Profits of private sector businesses
- +
- Rent income from the ownership of land
- =
- Gross Domestic product (by sum of factor incomes)
National income measures the monetary value of the flow of output of goods and services produced in an economy over a period of time
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