GDP? Yeah, I know.....yawn
Well, our American philanthropist aka Trump has been throwing around accusations of European nations not paying their dues. Dues as agreed to finance NATO (North Atlantic Treaty Organisation). Figures banded about are 5% of GDP (Gross Domestic Product). But what exactly are we talking about? What is GDP in particular? It measures the total value of all goods and services produced within a country's borders in a specific period. In order to compute GDP, economists employ three different approaches: income, expenditures, and production. Although each methodology offers a unique perspective, they should theoretically yield the same value for GDP. The income approach calculates GDP by adding up all the incomes in the economy, including wages, rents, interest, and profits. This approach is based on the premise that all income must come from the production of goods and services. The expenditure approach, also known as the spending approach, calculates GDP by adding up all the spen...