Consider the following statements about Gross Domestic Product I. It is the market value of all final goods and services made within the borders of a nation in a year. II. It is equal to the total expenditures for all final goods and services produces within the country in a stipulated period of time. Which of the statements given above is/are corrcet?

Statement I is correct as Gross Domestic Product (GDP) is defined as the market value of all final goods and services produced within the domestic territory of a country during a specific time period, typically a year [3]. This definition ensures that only final products are counted to avoid double-counting intermediate goods [t4][t8]. Statement II is also correct because the expenditure approach is a standard methodology for calculating GDP. This approach posits that the total value of production must equal the total expenditures made by final users (households, businesses, government, and foreigners) on those goods and services within the country during the stipulated period [t1][t4][t5]. Since GDP can be measured through the production, income, or expenditure methods, and all three theoretically yield the same total value of economic activity, both statements accurately describe the nature and measurement of GDP [t6][t7].

Sources

1. [1] Indian Economy, Nitin Singhania .(ed 2nd 2021-22) > Chapter 1: National Income > CHAPTER SUMMARY > p. 17
2. [2] Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 2: SECTORS OF THE INDIAN ECONOMY > 22 UNDERSTANDING ECONOMIC DEVELOPMENT > p. 22
3. [3] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 1: Fundamentals of Macro Economy > 1.9 Gross Domestic Product > p. 12