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When you hear an economist or news reporter talking about the "size" of an economy, they are most likely referring to gross domestic product . One of the most common is gdp, which stands for gross domestic product. What is the gdp formula? Real gdp is calculated using a gdp price deflator, which is the difference in prices between the current year and the base year. Gdp = private consumption + gross private investment + government investment + . Source: quickonomics.com The four components of gross domestic product are personal consumption, business investment, government spending, and net exports.1 that tells you what a . Formula to calculate gdp · c = all private consumption/ consumer spending in the economy. · gdp = c + g + i + nx · c · g · i · nx · gdp = total national income + sales taxes + depreciation + net foreign factor . One of the most common is gdp, which sta