GDP measures the monetary value of final goods and
services—that is, those that are bought by the final user—produced
in a country in a given period of time (say a quarter or
a year). It counts all the output generated within the borders
of a country. GDP is composed of goods and services produced
for sale in the market and also includes some nonmarket
production, such as defense or education services provided
by the government. An alternative concept, gross national
product, or GNP, counts all the output of the residents of a
country. So if a German-owned company has a factory in the
United States, the output of this factory
GDP measures the monetary value of final goods andservices—that is, those that are bought by the final user—producedin a country in a given period of time (say a quarter ora year). It counts all the output generated within the bordersof a country. GDP is composed of goods and services producedfor sale in the market and also includes some nonmarketproduction, such as defense or education services providedby the government. An alternative concept, gross nationalproduct, or GNP, counts all the output of the residents of acountry. So if a German-owned company has a factory in theUnited States, the output of this factory
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