The basic formula for calculating the GDP is:
· C - Consumer Spending
· I - Investment made by industry
· E - excess of exports over imports
· G - government spending
Add them all together to = Y - the Gross Domestic Product (GDP)
1) Final Goods - If a log was made into timber which was made into a chair, Only the chair will be counted in the GDP.
2) Imputed Values - Logical or implicit value that is not recorded in any accounts.
3.) Market Price- a security’s last reported sale price (if on an exchange) or its current bid and ask prices (if over-the-counter); i.e. the prices as determined dynamically by buyers and sellers in an open market.