:: Cold War Guide :: Glossary :: GDP (gross domestic product)

GDP (gross domestic product)

A measure of the total value of goods and services produced by the domestic economy during a given period, usually one year. Obtained by adding the value contributed by each sector of the economy in the form of profits, compensation to employees, and depreciation consumption of capital . Only domestic production is included, not income arising from investments and possessions owned abroad, hence the use of the word domestic to distinguish GDP from gross national product GNP . Real GDP is the value of GDP when inflation has been taken into account.

< entries >

   :: Cold War Guide :: Glossary :: GDP (gross domestic product)