What is GDP? Concepts, Factor, History of GDP, Founder of GDP

Gross Domestic Product, simply known as GDP, indicates the total value of all goods and services produced within a country during a specific period of time. The GDP is often used to measure the economic performance of a country or region.

History of GDP

According to Wikipedia, Sir William Petty, an English economist, physician, scientist, and philosopher, developed the concept of GDP to measure the tax burden and argued that landlords were unfairly taxed during the conflicts between the Dutch and the English from 1652 to 1674. Charles Davenant, an English economist, Tory politician, and pamphleteer who represented the parliamentary constituencies of St Ives and Great Bedwyn, further developed this method in 1695.

How to specify gross domestic product (GDP)?

GDP can be determined in three ways, including the following approaches:

1. Production Approach (also known as Value Added Approach): The production approach assesses the value added at each stage of the production process.
2. Income Approach: The income approach refers to the total primary incomes distributed by resident producer units.
3. Expenditure Approach: The expenditure approach calculates the total of the final uses of goods and services as measured by purchasers' prices.