Introduction to GDP

Gross domestic product (GDP)- total value of all goods and services produced within a country borders with in a given year. and all production an income earned.
 - production needs to be finished on american soil.

Elements included in GDP

• Final goods and services
• Income earned (W.R.I.P) -wages ,rent ,income, proprietors 
• Interest payment on corporate bonds 
• Current production of final goods and services
• Unsold output (inventory)

Elements excluded in GDP

• Intermediate good- if included can cause double counting
• Transfer payments (public on private)                                                                                                 -Scholarships                                                                                                                                     -social security
• purchase of stocks and bonds
• None market transactions                                                                                                                       - Babysitting                                                                                                                                      - illegal drugs

 Here is a video to explain more