Gross Domestic Product (GDP)
Total value of goods/services produced in country in period.
Formula
GDP = C + I + G + (X − M)
Real World
The UK's GDP fell 9.9% in 2020 — the largest annual drop in over 300 years — signalling to businesses like JD Wetherspoon that consumer demand had collapsed.
Exam Focus
Always distinguish between real GDP (inflation-adjusted) and nominal GDP; examiners penalise confusion between the two in calculation questions.
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