Measuring the Economy
All 11 Measuring the Economy terms in the AP Economics glossary — each with a clear, exam-accurate definition. Tap any term for the full explanation, formula, and related interactive graph.
CPI is a measure of inflation.
The expenditure approach calculates GDP by summing all final spending on goods and services produced within a country.
Final goods are finished products.
The GDP deflator is a measure of the level of prices of all new, domestically produced, final goods and services in an economy.
Gross Domestic Product is the total market value of all final goods and services produced within a country in a given period of time.
Intermediate goods are unfinished products.
Nominal GDP is the value of all final goods and services produced in a given year, evaluated at current-year prices.
Nominal values are not adjusted for inflation.
Per capita GDP is the total GDP of a country divided by its population, measuring average economic output per person.
Real GDP is the value of all final goods and services produced in a given year, evaluated at base-year prices to remove the effects of inflation.
Value added is the value of output minus inputs.