Measuring GDP

This topic describes how to measure real gross domestic product (GDP), the key indicator of economic activity. It is growth in GDP, and growth in GDP per person, that we’re trying to understand and model. There are a lot of non-trivial issues with measuring GDP, and in particular with comparing GDP in different time periods or in different countries.

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Table of contents

• Two goods and two time periods
• Real GDP over time
• Real GDP across countries
• GDP per capita
• Living standards
• Comparisons with the past