Gross Domestic Product (GDP) is a concept used in macroeconomics to talk about all products and the maximum scope of their production in a certain period of time (commonly 1 year). The gross domestic product represents an important statistic that refers not only to products, also services and their rates of use and demand. All this expressed in monetary values, in order to establish measurements about the state of the country " Financially ".
The Gross Domestic Product brings together the accounting of everything that is a formal product, legally countable and that there is existence of invoices and pertinent fiscal documentation that validates it as a purely formal product. Exchanges, bartering between friends, informal trade, the black market, illicit movements and anything that does not correspond to the fiscal filters established by the nation's accounting agencies are excluded.
The Gross Domestic Product is fed by the private company and by the public company, regardless of whether it is an international subsidiary, it owes accounts to the state in order to determine how favorable the production of material is in that market. All this information is vital for the state, especially in times of crisis, where the production of matter is seriously compromised and therefore these values shown here can be evaluated in advance for a prompt response to a recession situation.
The monetary valuation of GDP can be carried out according to the market price (including subsidies and indirect taxes) or according to factor cost. There are several measurements of GDP in order to calculate inflation and other important data, This is the long-term GDP and the real GDP, this pair is calculated to know for sure how much inflation is, what movement it has had in recent years and compare them with the rest.
