Gross Domestic Product (GDP) is the sum of income coming into a country during the economic period in which it is measured.  GDP can me measured by a country’s income (also called gross domestic income (GDI), or by the total cost of all finished goods and services produced within the country.  It is called “gross” domestic product as the “gross” means that depreciation is not taken into account for investment.  If depreciation were taken into account and net investment was calculated then it would be net domestic product.

GDP can be calculated from the follow equation:

GDP = CONSUMPTION + GROSS INVESTMENT + GOVERNMENT SPENDING + (EXPORTS - IMPORTS)