Answer: total market value of all final goods and services produced in an economy in one year.
Explanation:
Gross Domestic Product (GDP) is simply the total market value of the FINAL goods and services produced in a country in a period, usually a year.
The term FINAL here is very important because if intermediate goods were counted then it would be OVERSTATED.
For example, if Toyota makes cars from the iron it buys from Parrain Mining, the figure that will be used to calculate GDP will be the Car itself and not the amount the Iron from Parrain cost.
Answer:
total market value of all final goods and services produced in an economy in one year.
Explanation:
The gross domestic product (GDP) is the market value of all the final and legal products and services produced during a year within a country.
The components of the GDP = private consumption + private investment + government spending + net exports (exports - imports)
Final products and services excludes intermediate goods and services, and goods and services produced and consumed by the same household, e.g. vegetables grown in the backyard, or if you paint your own house.
Legal refers to taxable products and services, e.g. illegal drugs are not included, black market goods and services aren't included.
