# what GDP refers to ?

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• Anonymous

It refers to the Gross Domestic Product.

This is basically how much income the economy (every single business and company) of a country makes over a period of usually a single a year.

For example, if you buy a video game for £/\$ 20, then £/\$ 20 income (not profit) has been made by the shop you bought it from. Therefore in theory, £/\$ 20 goes and contributes to the national GDP, and the measurement of the GDP increases by £/\$ 20.

In the space of a year, if the shop makes £2,000,000 from selling it's games, then it has increased the country's GDP by that amount. If the entire video games industry made £/\$ 6 billion income between themselves then the GDP would be increased by £/\$ 6 billion.

The same applies to all the other many industries (i.e. car, music, phone, computer, furniture e.t.c.) in that country, and the income generated would all be added up to measure the total income (or in other words output) of the economy of that country, which would be the GDP.

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This is a fairly basic explanation of what GDP is and there might be some more things you might have to look up about, but I hope it helped:).

Gross Domestic Product: Total annual value of goods and services produced by a country.

www.12-12-12.org/bookappi.htm

• Titan
Lv 4

it refers to the value of all final goods and services produced in an economy during a given fiscal year.

• Anonymous

George's Devastating Prophecies.

Ooops. this is the Economics section. It must be Gross Domestic Product (not multiplication) :)

'Gross Domestic Product'

In one word, total goods and services produced by a nation during one year excluding payments on foreign investments.

Gross Domestic Product/ of a country

It's output in \$\$ (or local currency)

• bejay
Lv 4