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 contracted by 9.9% in 2020 — the largest annual fall on record — as lockdowns halted consumer spending, investment, and exports simultaneously across the economy.
Exam Focus
Always contextualise GDP figures as growth rates, not absolute values, and link changes to business confidence and investment decisions.
How well did you know this?