In newspapers and magazines, you can often come across the abbreviation GDP, this abbreviation can also be heard from television or radio programs. But not everyone knows what it means.
Instructions
Step 1
GDP stands for gross domestic product and means the final market value of goods and services intended for direct consumption and produced per unit of time (year) in all existing sectors of the economy located on the territory of the state, used for consumption, accumulation and export, regardless of nationality used factors of production.
Step 2
GDP is nominal, real, actual and potential:
- Nominal GDP is expressed in prices of the current year;
- Real GDP is expressed in prices of the previous or any base year. Real GDP takes into account the extent to which its growth is determined by real growth in production indicators, and not by price increases;
- Actual GDP characterizes realized economic opportunities;
- Potential GDP reflects the potential of the economy and can be much higher than the actual one in terms of indicators.
Step 3
concepts are a kind of generally accepted abstraction.
Step 4
GDP can be calculated in three ways: by income, by expenditure, and by value added. Each of these methods has a special calculation formula, where the terms are certain economic indicators.
Step 5
The history of the origin of GDP. The first techniques for measuring the volume of national production started in the 30s of the XX century. Their founder was the economist Simon Kuznets, who works in the US Department of Commerce. The first serious estimates of national income were made by an American scientist in 1934. In his work, the accounts of the national product and income were indicated for the first time. Until that time, no one had detailed data on the country's economic activity.