What are the key factors considered in determining the Gross Domestic Product of a country
Describe the components that contribute to the calculation of a nation's GDP.
The Gross Domestic Product (GDP) of a country is determined by considering several key factors. The components that contribute to the calculation of a nation's GDP include:
- Consumption: This includes spending by households on goods and services.
- Investment: This refers to spending on capital goods, such as machinery and equipment.
- Government Spending: This includes expenditures on goods and services by the government.
- Net Exports: This is the difference between exports and imports of goods and services.
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