Gross Domestic Product Calculator
This calculator helps you compute Gross Domestic Product (GDP) using the expenditure approach, summing up personal consumption, gross investment, government spending, and net exports. It’s ideal for students, analysts, and economists tracking economic performance.
GDP (Expenditure Method) Calculator
Gross Domestic Product Formula
Where:
- $$C$$ = Personal Consumption
- $$I$$ = Gross Investment
- $$G$$ = Government Consumption
- $$X$$ = Exports
- $$M$$ = Imports
Explanation:
This is the **expenditure approach** to GDP, which calculates the total market value of all final goods and services produced within a country’s borders in a given period.
Gross Domestic Product is a fundamental indicator of a country’s economic health. The expenditure approach focuses on demand-side components: household spending, business investment, public sector expenditure, and net exports.
Example Variables:
- Personal Consumption (C): $10 trillion
- Gross Investment (I): $3 trillion
- Government Consumption (G): $4 trillion
- Exports (X): $2 trillion
- Imports (M): $1.5 trillion
- GDP = 10 + 3 + 4 + (2 – 1.5) = $17.5 trillion
Use Cases:
- Economic research and education
- Comparing country performance
- Financial and policy decision-making