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NATIONAL INCOME N U M B E R Form

NATIONAL INCOME N U M B E R Form

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In macroeconomics, the most common way economists  and policymakers measure the health of an overall   economy is by examining gross domestic product,  or GDP. Gross means total, domestic means within   a country’s borders, and product means the value  of all goods and services produced. However,   that’s a bit of an oversimplification,  so let’s look at the complete definition.   Gross domestic product is the value of all  final goods and services produced within a   country’s borders in a given year. Note the  emphasis on “final” and “in a given year.”  Final goods are also called “finished goods.” A  final good is one that will not be sold again as   part of some other good. If a baker buys flour,  sugar, and butter, we don’t count those as final   goods, because the baker will use those goods to  make a cake. In other words, they are goods that   aren’t finished yet, they are intermediate goods.  Now, the cake the baker made using

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