Gross Domestic Product is the most important concept of National Income. It is the total money value of all final goods and services which are produced within the domestic boundary of a country during a year.
Gross Domestic Product is denoted as = GDP
GDP = P*Q
P = Price of goods and service
Q = Quantity of goods and services
GDP can also be defined as the sum total of investment, consumption, government expenditure, net foreign exports during a year.
GDP = C + I + G + (X – M)
C = Consumption
I = Investment
G = Government expenditure
X = Export of a country during a year
M = Import of a country during a year
Final goods and services included by Gross Domestic Product can be described in the following way:
Consumer goods and services
Gross private domestic investment in capital goods