Gross Domestic product

I think that With all other components of GDP held constant, a one-dollar increase in imports necessarily means a one-dollar drop in GDP.

Rapid growth in GDP is generally associated with a large rise in imports. The reason is that high demand for foreign products coupled with high rates of return on domestic investment tends to pull foreign investment into a country and increase imports.

GDP, or Gross Domestic Product, is arguably the most important of all economic statistics as it attempts to capture the state of the economy in one number.

GDP is defined as the total market value of the goods and services produced by a nation's economy during a specific period of time. GDP is customarily reported on an annual basis.

GDP is defined to include all final goods and services that is, those that are produced by the economic resources located in that nation regardless of their ownership and are not resold in any form.

GDP differs from gross national product (GNP), which is defined to include all final goods and services produced by resources owned by that nation's residents, whether located in the nation or elsewhere.

GDP is divided among personal consumption, investment, net exports, and government spending. Consumption makes up roughly two-thirds of the total.

GDP is normally stated in annual terms, though data are compiled and released quarterly. . GDP is often a measure of the state of the economy. For example, many economists speak of recession when there has been a decline in GDP for two consecutive quarters. The GDP in dollars and real terms is a useful economic indicator.

Gross Domestic Product, or GDP for short, measures the value of a nation's output of goods and services for some period of time, usually a year. It is not the only measure of output—the Federal Reserve, for example, publishes an index of industrial production—but the GDP has become a favorite among economists because it is the most comprehensive of output measures.

Because GDP measures the value of output, it can increase for two distinct reasons. It can increase because more goods and services are being produced, or it can increase because prices of goods and services have risen.

The Gross Domestic Product (GDP) is perhaps the most widely used indicator of economic growth and well-being. The World Bank has called it "the main criterion for classifying economies."

According to conventional wisdom, what is good for the GDP is good for the nation; as the GDP rises, so do our fortunes.

Simply put, the GDP is the total value of all products and services bought and sold, a measure of money changing hands.

The GDP makes no distinction between productive and destructive activities. While a realistic measure of progress would separate costs and benefits, the GDP places a positive value on all transactions and adds them to the total. Illness, crime, and natural disasters all cause the GDP to increase, as money is spent to treat the sick, jail prisoners, and repair the damage. In this way the GDP rises even as the quality of life declines.

The GDP has no way of assessing the value of natural resources until they enter the monetary economy, or in other words, are consumed.