Chapter 3. Gross Domestic Product: The Big Picture

In This Chapter

  • GDP represents the big picture of economic health

  • Understanding how GDP reflects a country’s production

  • Three different ways to measure GDP

  • The four major spending components of GDP

  • Learning to think about how the economy behaves

Why should you care about gross domestic product (GDP)? Because once you understand GDP, you’ll start to understand what constitutes a healthy economy, providing you with insight into what makes each component of GDP (such as personal spending and investment) tick. The major point about GDP is that it helps you think about how the economy behaves.

And if you think that kind of insight works to your advantage when it comes to investing your money, you’re right! ...

Get The Complete Idiot’s Guide® To: Economic Indicators now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.