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Q: Letter D in GDP stands for __________ in economics.
  • A. Domestic
  • B. Development
  • C. Depreciation
  • D. Destruction
Correct Answer: Option A - GDP = Gross Domestic Product is a measure or total value of a country's annual output of goods and services produced in an economy. It is calculated as– GDP = Consumption (C) + Investment (I) + Governmental Spending (G) + Net exports [Export (X) – Imports (M)] - Expenditure Approach. GDP = C + I + G + (X–M). GDP includes final goods and services, it does not include intermediate goods. Now Income Approach is– GDP = National Income + Statistical discrepancy + Capital Consumption allowance. GNP = GDP + NR (Net income receipts) – NP (Net outflow of foreign assets). GNP = GDP + X + Z X - Net Export, Z - Domestic resident net income
A. GDP = Gross Domestic Product is a measure or total value of a country's annual output of goods and services produced in an economy. It is calculated as– GDP = Consumption (C) + Investment (I) + Governmental Spending (G) + Net exports [Export (X) – Imports (M)] - Expenditure Approach. GDP = C + I + G + (X–M). GDP includes final goods and services, it does not include intermediate goods. Now Income Approach is– GDP = National Income + Statistical discrepancy + Capital Consumption allowance. GNP = GDP + NR (Net income receipts) – NP (Net outflow of foreign assets). GNP = GDP + X + Z X - Net Export, Z - Domestic resident net income

Explanations:

GDP = Gross Domestic Product is a measure or total value of a country's annual output of goods and services produced in an economy. It is calculated as– GDP = Consumption (C) + Investment (I) + Governmental Spending (G) + Net exports [Export (X) – Imports (M)] - Expenditure Approach. GDP = C + I + G + (X–M). GDP includes final goods and services, it does not include intermediate goods. Now Income Approach is– GDP = National Income + Statistical discrepancy + Capital Consumption allowance. GNP = GDP + NR (Net income receipts) – NP (Net outflow of foreign assets). GNP = GDP + X + Z X - Net Export, Z - Domestic resident net income