Explain with example how to calculate GDP.
CBSE class 10th. 3marks question.
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Explain with example how to calculate GDP.
CBSE class 10th. 3marks question.
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Answer:
The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports).
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Answer:
example is
GDP = C + G + I + (X - M)
In this case the C is represented by Household Consumption which is $304. The G refers to Government Spending which is $156. I is gross private investment and is $124. (X - M) is the net exports and in the table is shown to be $18.