GDP

Question 1

What is GDP? What does each letter stand for?

Answer 1

measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time. / Gross Domestic Product

Question 2

How is GDP Calculated?

Answer 2

GDP = private consumption + gross private investment + government investment + government spending + (exports – imports). /C+I+G+(X-M)

Question 3

What is a recession?

Answer 3

the economy struggles, people lose work, companies make fewer sales and the country’s overall economic output declines.

Question 4

What is a depression?

Answer 4

depression, in economics, a major downturn in the business cycle characterized by sharp and sustained declines in economic activity.