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Economics

Needing help with addressing GDP to give an Idea of what the economy may look like based on recent history and expected future conditions such as how the GDP is determined, Trends, Forecasts, and statistics.

The response addresses the queries posted in 897 words with references.

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The response addresses the queries posted in 897 words with references.

// In this paper, we will discuss about Gross domestic product and its role in an economy on the basis of recent history and expected future conditions of economy. The paper will also include the determination of GDP through various approaches. We will also discuss about the GDP trends, forecasts and statistics.//

GDP is the abbreviation of Gross National Product. It refers to the evaluation of market value of the products, goods and services domestically produced by a country. It is the sum of the money or income generated by a nation in a year. The nation's overall economic output is measured by GDP. GDP helps in determining how the economy is working, and whether it is growing rapidly or slowly. It also helps in comparing the relative growth rate and sizes of economies. There are many approaches of determining GDP such as income approach, expenditure approach and the product or output approach (Lipsey & Chrystal, 2003).

Various approaches of determining GDP:

Income approach: It is an effective approach of determining GDP. This approach of GDP helps in measuring the national income. National income is a sum of income of all producers that include income of labor, interests, rental income, and profits. The formula of calculating national income is:

NI = W + R + i + PR

In this formula, NI stands for national income, W stands ...

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The response addresses the queries posted in 897 words with references.

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