What is GDP and why is it so important?

[LSK]

http://www.investopedia.com/ask/answers/199.asp

What did you think I was talking about?!?!?

:hide:

[KSinTX]

1. You were one click away

http://www.investopedia.com/terms/g/gdp.asp

Gross Domestic Product (GDP)

The monetary value of all the finished goods and services produced within a country's borders in a specific time period, though GDP is usually calculated on an annual basis. It includes all of private and public consumption, government outlays, investments and exports less imports that occur within a defined territory.

GDP = C + G + I + NX

where:

"C" is equal to all private consumption, or consumer spending, in a nation's economy
"G" is the sum of government spending
"I" is the sum of all the country's businesses spending on capital
"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

"GDP is commonly used as an indicator of the economic health of a country, as well as to gauge a country's standard of living. Critics of using GDP as an economic measure say the statistic does not take into account the underground economy - transactions that, for whatever reason, are not reported to the government. Others say that GDP is not intended to gauge material well-being, but serves as a measure of a nation's productivity, which is unrelated."

[Iris]

2. all this time I thought it was the GNP

Gross National Product. Is there such a thing?

[KSinTX]

3. Both exist

"GDP is the market value of everything produced within a country; GNP is the value of what's produced by a country's residents, no matter where they live."

http://www.factcheck.org/askfactcheck/what_is_the_difference_between_gdp_and.html

[Iris]

6. Ah! Ok!

had to reach way back in my memory for even the GNP! So, I sort of relearned something today!

thanks!

[CatholicEdHead]

4. GD-P

And why is that so important?

[KSinTX]

5. Are you thinking the forum? GD-P or GDP (Gross Domestic Product)?

nt

[Midlodemocrat]

7. A forum where a tool named LSK spends way too much time.

[Tuesday Afternoon]

8. it is over and to the right

and it is volatile :grr: :scared: