// definition
GDP
Gross domestic product
freshreviewed 0 days ago
Short definition
Value of final goods and services produced within a territory over a period. The expenditure measure combines consumption, investment and government spending with exports, then subtracts imported content already included in those purchases. Higher imports alone do not identify the overall effect on production.
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Knowledge map
Intuition
Separate domestic spending from foreign production.
Formula
GDP = C + I + G + X − MWhy it matters now
Read imports while separating spending, production and financing.