Measuring gross domestic product (GDP) gives us an idea of the total production of an economy over a particular period. GDP is made up of the total market value of all final goods and services produced in an economy (but that doesn’t include government transfers). The formula to remember is Y = C + I + G + X.

• For more information, visit: https://www.policyed.org/econ1/compos....

• To view the other videos in the Econ 1 series, visit: http://bit.ly/2DARrrk

• To view all of the online classwork to Econ 1: Principles of Economics, visit: http://stanford.io/2Gcqlp2

• To read John Cochrane’s blog post on “Consumption vs. GDP,” click here: http://bit.ly/2shMXRQ

• Read John Taylor’s blog post on “The GDP Impact a U.S. Fiscal Consolidation Strategy,” available here: http://bit.ly/2shND9P

• Read John Taylor’s blog post on “MacroMania on Nominal GDP Targeting and the Taylor Rule,” available here: http://bit.ly/2GYzEci