Gross Domestic Product or GDP
GDP is defined as the total monetary value of all final goods and services produced in a country in a given year. It is calculated by adding all the four possible types of expenditures namely Consumption, Investment, Government Spending and Net Exports. It is one of the most important indicators to determine the health of an economy.
GDP = C+I+G+(X-M)
Where
C=Private consumption
I=Gross investment
G= Government spending
X= Exports
M= Imports