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Essay Archive - Gross Domestic Product
Gross Domestic Product
The Gross Domestic Product is one of the important tools used to measure a nation’s productivity and output. It is a “scorecard” that can be used to measure one year’s output against another, or even to compare one nation‘s economic output (as long as the formula’s limitations are recognized) to another’s.
Components of Gross Domestic Product
There are two approaches to Gross Domestic Product: income and expenditure. The income approach adds up the income derived from goods and services produced within the boundaries of a nation: wages and salaries + rent + profits + interest + adjustments. The....
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