Copyright

What is the value of GDP?

Question:

What is the value of GDP?

Gross Domestic Product (GDP):

Gross Domestic Product (GDP) measures the output of a country by adding Consumption by consumers plus Investment by businesses plus Government spending plus the net of its Exports minus its Imports.

Answer and Explanation:

There are two meanings of the word "value" that could be applied to this question. The dollar amount of GDP in the United States for 2019 was over $21 trillion dollars. That is one way to state the value of GDP.

The other way is to consider why the GDP is important. GDP matters because it measures a country's standing in the world compared to other countries. As a measure of well-being, GDP per capita (average GDP for each member of society) allows us to measure our own growth as well as compare to other countries. GDP is not a perfect measure, but it does a good job of allowing us to keep track and compare.


Learn more about this topic:

Loading...
Overview of the Gross Domestic Product

from CLEP Social Sciences and History: Study Guide & Test Prep

Chapter 59 / Lesson 2
4.6K

Related to this Question

Explore our homework questions and answers library