As they explain it, GDP is the total market value of the goods and services produced within the US each year. Seem simple? It’s not. Those seemingly simple terms hide enormous complexity.

John Mauldin “ Thoughts from the Frontline “ Newsletter Feb. 15. 2020

Gross Total market value Domestic Within the United States Product Goods and services GDP is the way we measure the U.S. economy and its growth. GDP = the total market value of the goods and services produced within the United States in a year. A good is a video game, a car, an apple, a gold ring. Goods are things that people make, grow or extract from the land. A service is a haircut, a bus ride, computer repair, a doctor’s care. Services are actions that people do for someone else. Market value is how much something costs in the marketplace. It’s what you pay for that video game or haircut.

Link: https://www.bea.gov/sites/default/files/2018-04/GDP-Education-by-BEA.pdf 

    Business and finance news from the OECD

We assist policy makers in fostering fair and efficient markets, which contributes to inclusive economic growth and in turn better lives.