What is GDP?

Wha

t is

GD

P?• The monetary value of all the finished

goods and services produced within a country's borders in a specific time period, usually on an annual basis.

• GDP = C + G + I + NX

• "C" is equal to all consumer spending in a nation's economy"G" is the sum of government spending"I" is the sum of all the country's businesses spending on capital"NX" is the nation's total net exports, calculated as total exports minus total imports. (NX = Exports - Imports)

• GDP is commonly used as an indicator of the economic health of a country, as well as to gauge a country's standard of living.

GDP Video

What is Gross National Product?

• An economic statistic that includes GDP, plus any income earned by residents from overseas investments, minus income earned within the domestic economy by overseas residents.

• GNP is a measure of a country's economic performance, or what its citizens produced (i.e. goods and services) and whether they produced these items within its borders.

Wha

t is

per c

apita

?• A Latin term that translates into "by head,"

basically meaning "average per person."

• Per capita can take the place of saying "per person."

• Per capita is often is used to express a country or

region's income level or economic output, such as GDP. For example, consider the United States in 2011, with a population of about 313,400,000 people and a GDP of $15,094 trillion. In this case, the per capita income, or average income per person, would be equal to approximately $48,000.

• National economic indicators such as GDP or GNP are typically quoted on a per capita basis when presented in the media.