Section 1
Measuring Output Using GDP
By Boundless
![Thumbnail](../../../../../../figures.boundless-cdn.com/20490/square/cular-flow-of-goods-income.jpg)
Gross domestic product is the market value of all final goods and services produced within the national borders of a country for a given period of time.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20491/square/p-categories-united-states.jpg)
GDP is a measure of national income and output that can be used as a comparison tool.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20620/square/circular-flow-of-income.jpeg)
In economics, the "circular flow" diagram is a simple explanatory tool of how the major elements in an economy interact with one another.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20530/square/p-categories-united-states.jpg)
GDP is the sum of Consumption (C), Investment (I), Government Spending (G) and Net Exports (X – M): Y = C + I + G + (X - M).
![Thumbnail](../../../../../../figures.boundless-cdn.com/20686/square/capita-world-map-imf-2007.jpg)
GDP can be calculated through the expenditures, income, or output approach.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20535/square/731-gdp-1.jpg)
The income approach evaluates GDP from the perspective of the final income to economic participants.
![Thumbnail](../../../../../../figures.boundless-cdn.com/20536/square/450px-gdpercapita.jpg)
The value of GDP as a measure of the quality of life for a given country may be limited.