2014-03-12
The gross domestic product (GDP), a basic measure of an economy's economic performance, is the market value of all final goods and services produced within the borders of a nation in a year. GDP can be defined in three ways, all of which are conceptually identical. First, it is equal to the total expenditures for all final goods and services produced within the country in a stipulated period of time (usually a 365-day year). Second, it is equal to the sum of the value added at every stage of production (the intermediate stages) by all the industries within a country, plus taxes less subsidies on products in the period. Third, it is equal to the sum of the income generated by production in the country in the period, which is compensation of employees, taxes on production and imports less subsidies, and gross operating surplus (or profits).