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Introduction to Macroeconomics - Chapter 3
3.1 What is GDP?
Gross Domestic Product (GDP) is the total monetary value of all finished goods and services produced within a country's borders in a specific time period. It serves as a comprehensive scorecard of a country's economic health.
GDP can be measured using three approaches: the expenditure approach, the income approach, and the production approach, each of which should yield the same result when applied correctly.
A sustained fall in GDP over two consecutive quarters formally defines a recession, making GDP the primary metric watched by central banks, governments, and investors worldwide.
3.2 Nominal vs. Real GDP
Nominal GDP measures the value of all goods and services produced using current prices.
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Introduction to Macroeconomics - Chapter 3
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