GDP is calculated by adding up the total market value of all final goods and services produced within a country during a specific time period
GDP can be calculated using the expenditure approach: GDP = C + I + G + (X – M)
C = consumer spending on goods and services
I = investment spending by businesses and households
G = government spending on goods and services
X = exports
M = imports
GDP can also be calculated using the income approach by summing all incomes earned from production
GDP can also be calculated using the production or output approach by adding the value added at each stage of production
Only final goods and services are counted to avoid double counting
Goods and services produced within the country are counted, regardless of who owns the resources
GDP is usually measured for a quarter or a year