# How can I calculate gross domestic product at market price?

## Question:

How can I calculate gross domestic product at market price?

## Gross Domestic Product at Market Price

The Gross domestic product at market price is the sum total of all final goods and services at its market monetary value produced in a geographic region at a period of time. The GDP is used to evaluate the growth of any country.

Gross domestic product at market price can be calculated by three different approaches:

1. Expenditure approach: In expenditure approach the GDP at a market price calculated by the formula

{eq}Y = C + I + G + \left( {X - M} \right) {/eq}

Here Y is GDP at market price, C is consumption, I is investment, G is government expenditure and (X-M) is total Export minus total import.

2. Income approach: In income, approach GDP is calculated as :

{eq}GDP = {\rm{National}}\;{\rm{Income}}(NY) + {\rm{Indirect}}\;{\rm{Business}}\;{\rm{Taxes}} + {\rm{Capital}}\;{\rm{Consumption}}\;{\rm{Allowance}}\;{\rm{or}}\;{\rm{depreciation}}\left( {CCA} \right) + {\rm{Net}}\;{\rm{factor}}\;{\rm{payment}}\;{\rm{to}}\;{\rm{rest}}\;{\rm{of}}\;{\rm{the}}\;{\rm{world}}\left( {NFP} \right) {/eq}

3. Output approach: This approach is also called ?Value Added? method.

{eq}GDP = {\rm{Gross}}\;{\rm{value}}\;{\rm{of}}\;{\rm{output}} - {\rm{Value}}\;{\rm{of}}\;{\rm{intermediate}}\;{\rm{consumption}} {/eq}