4.3 Measuring the size of the economy 4.3. 1 GDP(Gross Domestic Product the market value of all final goods and services produced within a country in a given period of time final versus intermediate it can be measured by adding up all expenditures on final output of firms all the incomes generated by production of final output all value added in production Classification nominal or current gDP Values of GDP that have not been adjusted for price changes real or constant GDP Values of GdP that have been adjusted for price changes Deflator the price level expressed as a decimal fraction of the original price level4.3 Measuring the size of the economy 4.3.1 GDP (Gross Domestic Product) ➢ the market value of all final goods and services produced within a country in a given period of time ➢ final versus intermediate ➢ it can be measured by adding up ⚫ all expenditures on final output of firms ⚫ all the incomes generated by production of final output ⚫ all value added in production ➢ Classification ⚫ nominal or current GDP • Values of GDP that have not been adjusted for price changes ⚫ real or constant GDP • Values of GDP that have been adjusted for price changes ➢ Deflator ⚫ the price level expressed as a decimal fraction of the original price level