Discuss what is, and what is not, included in calculating GDP (Gross Domestic Product)?
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A country's Gross Domestic Product, commonly referred to as GDP, is a calculation which measures the values of all goods and services produced during a specified period, generally a year. This figure includes goods and services produced by both individuals and corporations. Real GDP adjusts for inflation.
GDP statistics includes "all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory." The GDP does not include the net investments from foreign nations; these are included in the GNP (Gross National Product).
GDP is used as an indicator of its citizens' standard of living as well as to assess the health of the country's economy.
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