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Essay Galaxy - 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 expenditure approach, which will be the focus of this paper, adds up the sum of the market value of services and goods produced by resources located within the boundaries of a nation. The compon....

Number Of Pages: 3 Number Of Words: 677

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