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What does United States GDP measure and what should United States GDP measure?  

What does United States GDP measure and what should United States GDP measure?  

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Expert Solution

GDP is the monetary measure of all final goods and services produced within US boundary in a given period. It measures the overall size of an economy .

The US GDP is calculated using expenditure method: GDP = C+I+G+NX

All these components contribute to the US economy. The largest contribution comes from consumption spending which accounts for more than two-thirds of the US GDP. It includes both durable and non-durable items. Government purchases represent government consumption and gross investment. Investment includes both fixed and residential investment. Net exports is exports less imports.

Rahul Sunny answered 2 years ago
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