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National Product and Income, First Three Quarters Form

National Product and Income, First Three Quarters Form

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Let's say we're studying a very small and oversimplified country that only sells apples, and we measure the GDP in year one. And we measure that GDP as $1,000. And all of that is due to apples. And we also know that the price of apples in year one was $0.50 a pound. So I'll write it as $0.50 per pound. And let's say that now year one has gone by and even year two has gone by, and we're able to measure the GDP in year two. So the GDP in year two is $1,200. And the price of apples in year two, let's just say it is $0.55 a pound. So my question to you is, GDP, the whole point of measuring GDP, is measuring the productivity of a country. I mean we are measuring in terms of dollars, but we care more about just the dollar amount. We really care is, was this country more productive? And if it was more productive, how much more productive was it? And if we just look at these GDP numbers right over here, this $1,000 versus this $1,200, it gives you the sense that-- well, at least if you just lo

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