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what is GDP?
- Gross domestic product (GDP) can be defined as total
- market value of all final goods and services produced within a country in a given time period.
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How do you calculate GDP?
- • GDP may be calculated by summing total
- expenditures on all final output, or by summing the incomes derived from the production of that output.
- • By the income approach, GDP is calculated as the sum of wages, salaries and supplements, gross operating surpluses, gross mixed income and indirect taxes less
- subsidies.
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What is real GDP
Real GDP is when you compare the GDP against a base to see the difference in price (inflation, deflation) over the years.
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What is BOP
Balance of payments is a record of one countries transactions with all other countries during a specific time frame. This is just another economic indicator of a country's relative value and, along with all other indicators, should be used with caution. The BOP includes the trade balance, foreign investments and investments by foreigners.
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what are the two basic subcategories of BOP accounts:
- - current account—(income and goods and services)
- - capitaland financial accounts (includes direct investments and portfolio investments and financial derivitives)
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