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What Is Written Here Is Not Investment Advice. It has been published on this page to explain the terminology used with explanations about the stock market, digital currencies, economy, finance and investment instruments.

🔍Gross Domestic Product

 Gross domestic product (GDP) is the total value of goods and services produced by a country in a given time period. GDP is a widely used indicator to measure the economic size and welfare of a country. In the calculation of GDP, it is essential to evaluate all goods and services produced within the borders of the country at market prices. GDP can be calculated in three different ways: production method, income method and expenditure method. In the production method, the added values of all sectors in the economy are summed up. In the income method, income from all factors in the economy (labor, capital, entrepreneurship) is added. In the expenditure method, the expenditures made by all segments of the economy (consumer, investor, government, foreign trade) are added. Besides GDP, gross national product (GNP) is a concept used to measure the economic size of a country. GNP, unlike GDP, is calculated on the basis of citizenship, not within the borders of the country. In other words, GNP is the total value of the goods and services produced by the citizens of a country all over the world in a given time period. The difference between GNP and GDP is called net factor income. Net factor income is the difference between factor incomes from abroad and factor incomes paid domestically. If a country's net factor income is positive, its GNP will be greater than its GDP. If net factor income is negative, its GNP will be less than its GDP.


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