Gross domestic product (GDP)
GDP is the money value of final goods and services produced within the domestic territory of the country during a given period of time, a quarter or a year. GDP is the output produced within a country’s borders regardless of whether it is produced by the country’s factors or not.
GDP in open economy
GDP= C + I + G + (X-M)
GDP in closed economy
GDP= C + I + G
GDP (factor cost) = GDP (market price) – indirect taxes + subsidies.
GDP (market prices) = GDP (factor cost) + indirect taxes – subsidies.