Module 1 introduces gross domestic product (GDP), the most common measure of total production within an economy. Specifically, Module 1 examines the definition of GDP, how GDP is calculated, and the shortcomings of GDP. In addition, real GDP and nominal GDP are distinguished from each other.
Define GDP in words and know its formula.
Calculate GDP when given the relevant statistics.
Explain how real GDP differs from nominal GDP.
Use the GDP deflator formula.