GDP

• Health of an economy is measured by Gross Domestic Product
• Basically means Total (Final) Value of all goods/services within a country’s borders
  • In a given year
• There are certain goods which are used to make other goods but are still considered final goods.
  • They’re called Capital Goods
• Four types of Final Goods/Services:
  • Consumer
  • Business
  • Government
  • Net exports
• Two types of GDP:
  • Nominal
  • Real
    • Nominal GDP but includes inflation data
• More accurate analysis is to GDP per capita as a lot of factors are not considered in GDP
• GDP per capita = GDP/total population