21 GDP: A Measure of Total Production and Income

Photo shows a few financial analysts at work.

How do we track economic booms and busts?

Chapter Checklist

When you have completed your study of this chapter, you will be able to

  1. 1 Define GDP and explain why the value of production, income, and expenditure are the same for an economy.

  2. 2 Describe how economic statisticians measure GDP and distinguish between nominal GDP and real GDP.

  3. 3 Describe the uses of real GDP and explain its limitations as a measure of the standard of living.

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