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What is GDP and what does it represent for a country?
GDP is the market value of all goods and services produced within a country in a given period of time. It is important because it represents and reflects the size of the economy and how an economy is performing. The growth rate of GDP is used as an indicator of the general health of the economy.
The equation of calculating GDP:
GDP=C+I+G+(X-M)
GDP = private consumption + gross investment + government investment + government spending + (exports – imports)
Personal Consumption: $12.89 trillion
Business Investment: $3.39 trillion
Government Investment: $3.18trillion
Net exports: $-0.9trillion
We calculate GDP of the US in 2018 according to the equation and the information above.
GDP of the US in 2018=$12.89trillion +$3.39trillion +$3.18trillion -$0.9trillion =$18.56trillion
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