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The Gross Domestic Product

The Gross Domestic Product (GDP) exprimes the gross added value of the final output, produced by the economic agents inside the borders of a country, no matter if they belong or not to that country.

In the two definitions above was mentioned the word final: final output, final goods etc. When we speak about this word, we reffer to the goods and services produced in the course of a certain period of time, and which are no longer used to produce any other goods.

In case they are used in an ulterior process of production we speak about intermediary consumption. If we add to the Gross Domestic Product the intermediary consumption, we get another indicator, the Gross Aggregate Proudct.It is important not to include the intermediary consumption into the GDP, in order to avoid the double registering, whose effects are the altered images of the macroeconomic results.

The final goods, included in the calculation of GDP, are meant to get directly into consumption, being sold to final consumers.

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