 The market value of all final goods & services produced within a nation’s borders in a given time period (often used annually) Measures 2 things at once: 1. Total income of everyone in the economy 2. Total expenditure on the economy’s output of goods

a. Products used in making other products b. Buying used goods c. They are charted in a yearly span d. Not produced in U.S. e. No way to measure out f. B/c they are illegal or avoid taxation

1. Consumption 2. Investment 3. Government spending 4. Net exports Formula: C+I+G+X=GDP

 Uses constant prices  Real GDP changes when there is a change in output

 Uses current prices  Nominal GDP changes when there is a change in output or price scottgrannis.blogspot.com