Measuring the Macroeconomy

In this lesson, we learn:

• The importance of gross domestic product (GDP)
• The composition of GDP, and how it has changed over time.
• How to use GDP to examine
  • the evolution of living standards
  • differences in living standards across countries.

• National income accounting
  • Method of aggregating the production of diverse goods into a single measure of overall economic activity.

• National accounting
  • State of an economy at a given time.
  • Changes to an economy over time.
  • Differences across countries.