What is actually GDP ?

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Solution

Gross Domestic Product (GDP) is the broadest quantitative measure of a nation's total economic activity. More specifically, GDP represents the monetary value of all goods and services produced within a nation's geographic borders over a specified period of time.

The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment +government spending + (exports – imports). Nominal value changes due to shifts in quantity and price.

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Statement A: GDP was expected to be 100 crores in a year.

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