Measuring GDP

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  • Measuring economic growth with GDP
    • Different manipulations of GDP
      • Nominal GDP
        • Market value of total g+s
      • Real GDP
        • Nominal GDP adjusted for inflatio
      • GDP per capita
        • GDP/ Population
      • Value
        • total output x price
      • Volume
        • total number of g+s produced
    • GDP = the total market value of all goods and services produced in the country in a given year.
      • Measured in 3 ways
        • Expenditure method expenditures (consumption, investment, government spending and net exports)
        • Income method adding up all of an economy's incomes (wages, interest, profits and rents
        • Output method  adds together the value of output produced by each of the productive sectors in the economy using the concept of value added. .
        • This is because one person's expenditure is always another person's income. I.e Income = Output = Expenditure

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