Is GDP the revenue of a country?

Question:

Is GDP the revenue of a country?

Revenue

Revenue in economics is calculated by multiplying the price of the commodity with the quantity of the commodity produced in the economy. It is the earning of the firm by selling its commodity.

Answer and Explanation:

Yes, GDP at market price is the revenue of the country. Revenue of any firm is the sum of the market prices of the commodities produced by the firm in the economy and on the other hand GDP is also the sum of the market prices of all final commodities produced in the country at a certain period of time. Therefore GDP is the revenue of a country.


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Gross Domestic Product: Definition and Components

from Economics 102: Macroeconomics

Chapter 4 / Lesson 3
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