What is full form of GDP ?

Full Forms

GDP Full form 

The full form of GDP is Gross domestic product. And There are four different types of GDP showing different economic outlooks and use case.

1.Real GDP. Real GDP is a calculation of GDP that is adjusted for inflation.

2.Nominal GDP. Nominal GDP is calculated with inflation

3.Actual GDP. Actual GDP is the measurement of a country’s economy at the current time.

4.Potential GDP. Potential GDP is a calculation of a country’s economy under ideal conditions. 

full form of GDP

What Is the Formula for Calculating GDP?

To find the GDP of any country we use three different formulas.

1.Expenditures. This is the value of everything that is purchased within the country plus that country’s net exports to other countries.

2.Income. This is the income of all the individuals and businesses within the country. Also called domestic income.

3.Production. This is the market value of everything that is produced within the country.

GDP can be calculated by using the below mentioned basic formula.

GDP = Compensation of employees + gross operating surplus + gross mixed income + (taxes - subsidies on production and imports).

1.What is Compensation of employees- It is the total payments made to all employees or laborers. 

2.What is Gross operating surplus-It is essentially the profit of incorporated businesses. 

3. What is Gross mixed income- It is the profit of unincorporated businesses. 

What is the use of GDP

The main use of GDP is to determine the health of the economy and whether an economy is growing, as well as measuring the effects of inflation and deflation.

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