The gross domestic product is the market value of all final goods and services produced within a country in a given period of time. The GDP measures two things at once: the total of income of everyone in the economy and the total expenditure on the economy's output of goods and services. These two things are basically the same. The GDP is thought to be the best single measure of a society's economic well-being.
             The GDP can be computed in one of two ways, either by adding up the total expenditure by households or by adding up the total income paid by firms. The GDP can be divided into four components. The first is consumption, which is the total spending by households on goods and services. The next component is investment, the purchase of capital equipment, inventories, and structures. Third is government purchases, which is the spending on goods and services by local, state, and federal governments. The last component is net exports. This is the spending on domestically produced goods by foreigners minus spending on foreign goods by residents.
             Some products are excluded from the GDP because they are too difficult to measure. These include items produced and sold illicitly such as drugs and most items that are produced and sold at home, like vegetables.
             Although the GDP is a good measure of economic well being, it is not a perfect measure of overall human well-being. The GDP doesn't take into account the value of leisure, the value of a clean environment, and the importance of homemakers.
             When looking at the economy, economists use two different types of GDP. The first is known as "nominal GDP". It is the amount of goods and services valued at current prices. "Real GDP" is the production of goods and services valued at constant prices. "Real GDP" is not affected by a change in prices. It only reflects changes in the amou
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