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How does gross domestic product provide a means to analyze economic growth?

Question:

How does gross domestic product provide a means to analyze economic growth?

Gross Domestic Product:

Gross domestic product, or GDP, is the sum of consumption, investment, government spending, and net exports.

Answer and Explanation:

GDP tells you what consumers, businesses, the government, and foreign countries are spending during a given time period. If you measure GDP in 2019 and measure it again in 2020, the increase in GDP over the year is the growth of the economy.


Learn more about this topic:

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Gross Domestic Product: Definition and Components

from Economics 102: Macroeconomics

Chapter 4 / Lesson 3
58K

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