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! ...